© Dukascopy Bank SA
The pattern started on the 4th of October, 2011, when the pair peaked to 1.0658; currently it is trading at 100-day SMA at 0.9883. The RSI and the Stochastic indicators are in oversold area suggesting pair might be in a turning point. In addition, 61% of all pending orders on the pair are to go long. Long traders could focus on the weekly pivot (PP) at 0.9897, weekly pivot (R1)/20-day SMA at 0.9927/35 and cluster of resistance levels at 0.9985/1.0016 (weekly pivot (R2), Bollinger band, 200-day SMA, parity and weekly pivot (R3).
Current market sentiment is strongly bearish as 64% of traders hold short positions on the pair. Short traders could focus on the Bollinger band at 0.9871 and weekly pivots at 0.9839 (S1) and 0.9808 (S2).
Main fundamental events which could have significant impact on pairs development in the near future are the US and Canadian trade balances announced on 12th of December and FOMC Statement, Economic Projections and Press Conference on 13th of December.
© Dukascopy Bank SA