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Pattern started on 4th of October, 2011, when the pair peaked to 1.0658; currently it is trading slightly below 200-day SMA at 0.9995. Technical indicators on aggregate point at appreciation of the pair on 1D horizon suggesting it should continue moving towards pattern's resistance. Current market sentiment is mildly bullish as 53% of traders hold long positions on the pair. In addition, 56% of all pending orders on the pair are to go long. Long traders could focus on the 200-day SMA/parity condition at 1.00, weekly pivot (PP) at 1.0015, Bollinger band/weekly pivot (R1) at 1.0045/46 and weekly pivots at 1.0087 (R2) and 1.0117 (R3).
Technical indicators on aggregate point at depreciation of the pair on 1W horizon suggesting it will continue to follow pattern's, downward sloping, trend. Short traders could focus on the 20-day SMA at 0.9992, weekly pivot (S1) at 0.9973, Fibonacci retracement (38.2% of 4th of June, 2012, to 14th of September, 2012, move)/weekly pivot (S2)/Bollinger band at 0.9937, weekly pivot (S3) at 0.9901 and recent low at 0.9875.
Main events which could have significant impact on pairs development are Federal Reserve Chairman Ben Bernanke speech on 20th of November and Canadian monthly GDP figures released on 30th of November.
© Dukascopy Bank SA