© Dukascopy Bank SA
The pattern started on the 25th of July, 2012, when the pair dipped to 1.2373; currently it is trading at 1.2541; pattern's support and resistance are set to intersect on 20th of February, 2013, at 1.2527. Trading volume is U shaped (higher in the beginning and the end and lower in the middle of the pattern) in the length of the pattern. Market has bullish tendencies at the moment at 54% of traders have bought aussie versus the kiwi and 73% of all pending orders on the pair are to go long. Long traders could focus on the 20-day SMA/weekly pivot (R1) at 1.2548/61, pattern's resistance/100-day SMA at 1.2590/1.2608, Bollinger band at 1.2637 and weekly pivot (R2) at 1.2663.
Technical indicators on aggregate point at depreciation of the pair on 1D, 1W and 1M horizons suggesting it should breach pattern's support. Short traders could focus on the pattern's support/weekly pivot (PP) at 1.2500/1.2497, Bollinger band at 1.2459 and weekly pivot (S1) at 1.2396.
Main fundamental events which could have significant impact on pairs development in the near future are Reserve Bank of New Zealand Official Cash Rate announcement on 30th of January, Australian Producer Price Index announcement on 31st of January and Australian trade balance and Reserve Bank of Australia Cash Rate announcement on 4th of February.
© Dukascopy Bank SA