© Dukascopy Bank SA
The bullish channel currently being formed on the four-hour chart is a part of the rally that began to develop on Nov 7. Right now the rate is moving away from the lower edge of the formation at 1.3825, which was also reinforced by the weekly pivot point.
The bullish move is expected to pierce through the nearest resistance at 1.3941 (weekly R1 and daily R2) and reach the upper boundary of the pattern at 1.4015. There the currency pair is likely to start a bearish correction, though SWFX market participants, according to the fact that 75% of positions are short, reckon that the pair should soon change its direction.
© Dukascopy Bank SA