© Dukascopy Bank SA
The pattern started on the 12th of October, 2009, when the pair dipped from 0.9411; currently it is changing hands at 0.8509; with the trading range around 1100 pips. Trading volume seems to decline in the length of the pattern. Technical indicators on aggregate point at appreciation of the pair on 1W horizon suggesting it should reach the resistance line and maybe even penetrate the upper trend line. Long traders could focus on the 200-day SMA and Monthly pivot (PP) at 0.8545, Weekly pivot (R3) at 0.8630, Monthly resistance line at 0.8676 and the pattern's resistance at 0.8737.
Current market sentiment has slightly bearish tendencies as 57% of traders are short on the pair and 58% of all pending orders are to sell the euro versus its Great Britain Pound. Short traders could focus on the Bollinger band and Weekly pivot (S2) at 0.8428, Monthly pivot (S1) at 0.8298, Monthly pivot (S2) close to 0.8168. The next stop is a cluster of support levels close to 0.7930/20, where the Bollinger band and Monthly pivot (S3) stands. The final stop is pattern's support at the level of 0.7653.
Main fundamental events which could have significant impact on the pairs development in the near future are the U.K. manufacturing production (April 9th), German consumer prices and the ECB's monthly report, which will be published on April 11th.
© Dukascopy Bank SA