© Dukascopy Bank SA
The pattern started on the 1st of January, 2011, when the pair dipped to 0.7371; currently it is trading at 0.8222; pattern's support and resistance are set to intersect on 14th of January, 2015 at 0.7895. Trading volume is decreasing in the length of the pattern. Technical indicators on aggregate point at appreciation of the pair on 1D horizon. Long traders could focus on the pattern's resistance/weekly pivot (PP) at 0.8305/08, 20-day SMA at 0.8333, weekly pivot (R1) at 0.8392, recent high at 0.8477 and Bollinger band at 0.8506.
Market has strong bearish tendencies as 71% of traders hold short positions on the pair and 87% of traders have posted short orders. Short traders could focus on the 100-day SMA at 0.8216, Bollinger band/weekly pivot (S1) at 0.8161/47, weekly pivot (S2)/200-day SMA at 0.8063/58 and weekly pivot (S3) at 0.7902.
Main fundamental events which could have significant impact on pairs development in the near future are FOMC Meeting Minutes on 3rd of January and New Zealand Consumer Price Index announcement on 17th of January.
© Dukascopy Bank SA