© Dukascopy Bank SA
The pattern started when the pair bounced from pattern's support at 100.16; currently it is trading at 103.794. Technical indicators on aggregate point at appreciation of the pair on 1H horizon. Long traders could focus on the Bollinger band/Daily pivot (R1) at 103.94/98 and daily pivot (R2)/pattern's resistance at 104.28.
The Stochastic indicator on 4H and 1D horizons send sell signal. Current market sentiment is bearish as 53% of traders hold short positions on the pair. In addition, in 200 pip range from current market price 56% of all pending orders on the pair are to go short. Short traders could focus on the 20 bar SMA at 103.57, daily pivot (PP) at 103.451, Bollinger band/daily pivot (S1) at 103.14 and daily pivot (S2)/pattern's support at 102.60.
© Dukascopy Bank SA