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The pattern started when the pair rebounded from 1.5768 and after testing pattern's resistance twice it slowed down at 1.5612 where the pair is currently trading. Technical indicators on aggregate point at appreciation of the pair on 1D time horizon indicating that the pair might try to breach pattern's resistance for a second time. Long traders could set the first target at the SMA200 around 1.5623. If this level is breached, next targets could be at the daily pivot at 1.5640, Pattern's resistance at 1.5657 and recent peak at 1.5687.
Technical indicators on aggregate point at depreciation of the pair on 1H outlook indicating that the pair will continue to move towards pattern's resistance band. The SWFX market sentiment, which was significantly effected by better than expected US trade balance data, shows that 55% of traders expect depreciation of the pair as well. Short traders should focus on the daily pivot/pattern's support at 1.5602. If this level is breached, next targets could be at 8th of August low at 1.5574 and daily pivot at 1.5536.
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