© Dukascopy bank SA
The pattern started when the pair bounced from 0.7833 and slowed down at 0.7888 where the pair is currently trading. Patterns support level is at 0.7877; resistance level is at 0.7910. Technical indicators on aggregate point at appreciation of the pair on 4H time horizon indicating that the pair might try to breach patterns resistance. The SWFX market sentiment shows that 62% of trader currently hold long positions on the pair expecting appreciation of the pair. Long traders could set the first targets at the daily pivot (PP) at 0.7893. If this levels is breached, next targets could be set at daily pivot (R1)/patterns resistance at 0.7910 and daily pivot (R2) 0.7926.
Short traders, who expect the pair to depreciate, could set the first target at the Fibonacci retracement (38.2% of weekly move) at 0.7881. If this level is breached, next targets could be set at the pattern's support at 0.7877 and 200 day SMA at 0.7864.
© Dukascopy bank SA