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The pattern started on the 17th of June, 2012, when the pair peaked to 1.2748; currently it is trading at 1.3257. Trading volume is decreasing in the length of the pattern. Technical indicators on aggregate point at appreciation of the pair on 1D and 1W horizons suggesting it should continue following pattern's, upward sloping, trend. Long traders could focus on the weekly pivot (R1)/Bollinger band/recent high at 1.3285/308 and weekly pivots at 1.3344 (R2) and 1.3403 (R3).
The Stochastic indicator on 1W and 1M horizons and technical indicators on aggregate on 1M horizon points at depreciation of the pair. Current market sentiment is strongly bearish as 67% of trades have sold euro versus the greenback. Short traders could focus on the weekly pivot (PP) at 1.3226, 20-day SMA/weekly pivot (S1) at 1.3181/67, weekly pivot (S2) at 1.3108, Bollinger band/weekly pivot (S3) at 1.3058/49 and 100-day SMA/pattern's support at 1.2975/45.
Main fundamental events which could have significant impact on pairs development in the near future are FOMC Meeting Minutes on 3rd of January and ECB press conference on 10th of January.
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