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The pattern started when the pair started depreciating from 1.6315; currently it is trading at daily pivot (R1) at 1.6204. Technical indicators on aggregate send a very strong buy signal on 1H horizon suggesting that the pair should breach pattern's resistance in the near future. Long traders could focus on cluster of resistance levels at 1.6215/20 (pattern's resistance, Bollinger's band and 200 bar SMA), Fibonacci (23.6% of move since 10th of September) at 1.6228 and daily pivot (R2) at 1.6246.
Technical indicator on aggregate point at depreciation of the pair on 4H time horizon. The SWFX market sentiment is bearish as 73% of traders hold short positions on the pair expecting it's depreciation. In addition, in the range of 200 pips from current market price 54% of all pending orders are to sell. Short traders could focus on 20 bar SMA at 1.6184, Fibonacci (38.2%)/daily pivot (PP) at 1.6177/74, Bollinger's band at 1.6149 and daily pivot (S1)/Fibonacci (50%) at 1.6139/36.
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