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The pattern started on 24th of July, 2012, when pair started appreciating from 1.2042; at the moment pair is trading at 1.2973. Technical indicators on aggregate point at appreciation of the pair suggesting we might see formation of Triple Top or Rectangle pattern. 54% of all pending orders on the pair are to buy. Long traders could focus on weekly pivot (R1)/Bollinger band at 1.3025/43, pattern's top (5th of October) at 1.3072, weekly pivot (R2) at 1.3116 and pattern's top (18th of September) at 1.3173.
Technical indicators on aggregate point at depreciation of the pair on 1M horizon suggesting that pair will eventually drop below pattern's support. The SWFX market sentiment is bearish as 56% of traders hold short position on the pair expecting its depreciation. Short traders could focus on Fibonacci retracement (23.6% of 10th of August-17th of September move) at 1.2953, weekly pivot (PP)/20 bar SMA at 1.2926, weekly pivot (S1) at 1.2835 and cluster of support levels at 1.2817/04 (Fibonacci retracement (38.2%), Bollinger band and pattern's support).
Main fundamental events who might have impact on the development of the pair are Spanish 10-y Bond Auction on 18th of October, FOMC Statement on 24th of October and 29th of October.
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