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Pattern started on 24th of July, 2012, when the pair peaked to 0.9972; currently it is trading at 0.9435; pattern's resistance is at 0.9439. Current market sentiment is bullish as 74% of traders hold long positions on the pair expecting it to breach pattern's resistance. In addition, 71% of all pending orders on the pair are to go long. Long traders could focus on the cluster of resistance levels at 0.9439/64 (pattern's resistance, 200 bar SMA, Fibonacci retracement (38.2% of 16th of August to 14th of September move), weekly pivot (R1) and Bollinger band), Fibonacci retracement (50%)/weekly pivot (R2) at 0.9513/19 and Fibonacci retracement (61.8%)/weekly pivot (R3) at 0.9586/0.9606.
The RSI on 1D horizon and technical indicators on aggregate on 1W horizon point at depreciation of the pair suggesting we might see a bearish dip in the near future. Short traders could focus on the Fibonacci retracement (23.6%)/weekly pivot (PP) at 0.9371/70, 20 bar SMA/weekly pivot (S1) at 0.9325/22 and pattern's support/weekly pivot (S2)/Bollinger band at 0.9239/11.
Main fundamental events which could have significant impact on pairs development in the near future are Swiss Consumer Price Index on 7th of November federal Reserve Chairman Bernanke speech on 15th of November.
© Dukascopy Bank SA