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The pattern started on the 12th of April, 2012, when the pair started depreciating from 0.8320 and after testing pattern's support limits on 1st of June at 0.7456 and 25th of July at 0.7809 it slowed down near 200 day SMA at 0.8094 where the pair is currently trading. Technical indicators on aggregate send neutral signals indicating that it is highly likely that the pair will continue to hover above 200 day SMA in the near future The SWFX market sentiment is almost equally divided between bears and bulls supporting probability of such development.
Long traders, who expect that the pair will continue to appreciate along the pattern's corridor could set the first target at the recent peak/weekly pivot (R1) at 0.8125. If this level is breached, next targets could be set at the weekly pivot (R2) at 0.8173 and weekly pivot (R3)/recent pattern's resistance test level at 0.8220.
Short traders, who expect that the pair could drop below 200 day SMA, could set the first target at the mentioned level at 0.8042. If it would be breached next targets could be at the pattern's support at 0.8017 and weekly pivot (S1) at 0.7991.
Main fundamental event who might have significant impact on the development of the pair is release of FOMC minutes on 22nd of August.
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