© Dukascopy Bank SA
Pattern started on 1st of August, 2011, when the pair dipped to 0.7371; currently it is trading at 0.8246; pattern's support and resistance are set to intersect on 12th of January, 2015, at 0.7894. Technical indicators on aggregate point at appreciation of the pair on 1D and 1W horizon. Long traders could focus on the weekly pivot (R1) at 0.8248, Bollinger band at 0.8274 and weekly pivot (R2)/pattern's resistance at 0.8305/10.
Current market sentiment is strongly bullish as 72% of traders hold short positions on the pair. In addition, 62% of all pending orders on the pair are to go short. Short traders could focus on the weekly pivot (PP) at 0.8212, cluster of support levels at 0.8186/55 (20 and 100 day SMA and weekly pivot (S1)) and weekly pivot (S2) at 0.8118.
Main fundamental events which could have significant impact on pairs development in the near future are Reserve bank of New Zealand official cash rate announced on 5th of December and the US trade balance announcement on 11th of December.
© Dukascopy Bank SA