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The pattern started when the pair bounced from 1.5771. Currently the pair is trading close to pattern's support at 1.5888. Technical indicators on aggregate point at appreciation of the pair on 4H time horizon, suggesting that the pair will bounce from pattern's support. Long traders could set the first target at 31st of August high at 1.5896. If the pair breaches this level, next targets could be at daily pivot (R1)/pattern's resistance at 1.5902 and daily pivot (R2) at 1.5924.
The SWFX market sentiment is bearish as 79% of traders hold short positions of the pair expecting it will breach pattern's support. In addition, 58% of pending orders in the range of 100 pip from current market price are sell orders. The RSI on 1H time horizon gives sell signal supporting idea of at least short lived depreciation of the pair. Short traders could set their targets at daily pivot (PP)/4th of September dip at 1.5877,fibonacci retracement (23.6% of 30th of August move) at 1.5867 and daily pivot (S1) at 1.5855.
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