© Dukascopy Bank SA
The pattern started on the 1st of June, 2012, when the pair dipped to 0.9582; currently it is trading at the Bollinger band/pattern's support/weekly pivot (S1) at 1.0145. Trading volume seems to be U shaped in the length of the pattern. Current market sentiment is bullish as 58% of traders have bought the aussie versus the greenback. Long traders could focus on the weekly pivot (PP) at 1.0236, 20-day SMA/weekly pivot (R1) at 1.0277/89, resistance area at 1.0382/435 (weekly pivots R2 and R3, Bollinger band and 100 and 200 day SMAs) and pattern's tops at 1.0610/25 area.
Technical indicators on aggregate point at depreciation of the pair on 1D and 1W horizon. Short traders could focus on the weekly pivots at 1.0091 (S2) and 0.9997 (S3).
Main fundamental events which could have significant impact on pairs development in the near future are Australian quarterly GDP and trade balance announcements on 5th and 6th of March respectively and US trade balance announcement on 7th of March .
© Dukascopy Bank SA