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The pattern started on the 13th of November, 2012, when the pair peaked above 200-day SMA to 0.9513; currently it is trading close to pattern's resistance at 0.9304. Technical indicators on aggregate point at appreciation of the pair on 1D horizon. Trading volume seems to be decreasing lately. Current market sentiment is strongly bullish as 59% of traders have bought the greenback versus the frank and 61% of pending orders are to go long as well. Long traders could focus on the Bollinger band/Weekly pivot (R1) at 0.9359/65, 200-day SMA at 0.9402 and weekly pivot (R2) at 0.9423 and weekly pivot (R3) at 0.9513.
Short traders, who expect the pair to bounce from pattern's resistance, could focus on the weekly pivot (PP)/100-day SMA at 0.9275/64, weekly pivot (S1)/20-day SMA at 0.9217/16, weekly pivot (S2) at 0.9127 and Bollinger band/weekly pivot (S3) at 0.9073/68.
Main fundamental events which could have significant impact on pairs development in the near future are Semiannual Monetary Policy Report before the Senate Banking Committee on 26th of February and Semiannual Monetary Policy Report before the House Financial Services Committee on 27th of February by Ben Bernanke and announcement of preliminary annualized quarterly US GDP on 28th of February.
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