© Dukascopy Bank SA
Pattern started on 12th of July, 2012, when pair started appreciating after dipping to 1.0101; currently it is trading at 1.0347; pattern's support is at 1.0158 and pattern's resistance is at 1.0618. Technical indicators on aggregate point at appreciation of the pair on 1D horizon suggesting it should continue to move towards pattern's resistance. In addition, 57% of all pending orders on the pair are to go long highlighting the existence of moderate support for the pair in lower levels. Long traders could focus on the Fibonacci retracement (23.6% of 1st of June—9th of August move) at 1.0373, weekly pivot (R1) at 1.0393 and Bollinger band/weekly pivot (R2) at 1.0423/28.
Current market sentiment is bearish as 59% of traders hold short positions on the pair expecting its depreciation. Short traders could focus on the Weekly pivot (PP) at 1.0328, 20 bar SMA at 1.0292 and 200 bar SMA/Weekly pivot (S1) at 1.0272/67.
Main fundamental events which could have significant impact on pairs development are Cash rate announcement form reserve bank of Australia on 5th of November and US trade balance announcement on 8th of November.
© Dukascopy Bank SA