© Dukascopy Bank SA
The pattern started on the 5th of September, 2012, when the pair dipped to 0.7915; currently it is trading at 1.8419. Trading volume is decreasing in the length of the pattern. Technical indicators on aggregate point at appreciation of the pair on 1D horizon suggesting it should continue moving towards pattern's support. Long traders could focus on the Bollinger band/weekly pivot (R1)/recent peek at 0.8454/62 and pattern's resistance/weekly pivot (R2) at 0.8530/47.
Market has significant bearish tendencies as 74% of traders have sold the kiwi versus the greenback and 58% of pending orders on the pair are to go short as well. Short traders could focus on the weekly pivot (PP) at 0.8373, 20-day SMA/daily pivot (S1) at 0.8302/0.8283, 100-day SMA at 0.8248, weekly pivot (S2) at 0.8198, pattern's support/Bollinger band at 0.8171/50 and 200-day SMA/weekly pivot (S3) at 0.8112/09.
Main fundamental events which could have significant impact on pairs development in the near future are Federal Reserve Chairman Ben Bernanke on 14th of January and New Zealand's quarterly Consumer Price Index on 17th of January.
© Dukascopy Bank SA