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A symmetrical triangle pattern may come to an end soon, shows the weekly chart, suggesting that a prominent plunge is coming up. Both 55-month and 200-month SMAs have capacity to push the pair south towards several support levels, such as 0.7480, representing the weekly triangle lower trend-line and 20-period SMA cluster, followed by 0.7315 (55-week SMA). Major support at 0.6838 (January lows) is on the pair's way towards the lower trend-line and it will have to be broken in order for the pattern to hold. Additionally, bears dominate the market with 57% of traders anticipating gains from short positions, and aggregate technical indicators mostly show indifference between a potential bull or bear market with the only non-neutral aggregate indicator implying a down-trend in the four-hour time-frame.
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Bulls leave room for speculation
The pair could bounce from the broken upper trend-line around 0.7690 on its way to the four-month resistance at 0.7711 and several recent developments imply that the surge could currently be at its starting point. The daily chart shows that the rate has just encountered the significant 0.7527 level, which it might flirt with for a few more sessions before bouncing north. In fact, over the last four months the pair's movements have been restricted by an ascending channel pattern where the upper trend-line has been tested more with consistent volatility. All of the aforementioned developments contradict with the bearish scenario and suggest a bullish market in the last months of 2016.
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