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The pattern started on the 21th of March, 2012, when the pair started depreciating from 111.444 and after testing pattern's support limits on 1st of June at 95.607 and 24th of July at 94.125 it slowed down near 96.400 where the pair is currently trading; pattern's resistance is at 101.632. The Stochastic indicator sends buy signal on 1M outlook indicating the pair might have enough momentum to reach pattern's resistance. The SWFX market sentiment shows that 62% of the traders expect appreciation of the pair in the near future as well. Long traders, could focus on the recent peak at 97.824. If the pair breaches this level next targets could be set at the weekly pivots at 98.636 and 99.448.
Technical indicators on aggregate point at depreciation of the pair on 1W outlook indicating the pair might not breach the pattern's resistance and evolve in to rectangle pattern. Neutral signals by technical indicators on aggregate on 1D and 1M outlooks support such probability.
Short traders could set the first target at 10th of august low at 95.728. If this level is breached, next targets could be set at the pattern's support limits at 95.607 and 94.125 with daily pivots at 95.256 and 94.444 on the way.
Main fundamental events who might influence pairs development are German ZEW Economic Sentiment, Flash Manufacturing PMI and Ifo Business Climate announcements on 14th, 23rd and 27th of August respectively and Spanish and Italian 10 year bond auctions on 22nd and 29th of August respectively.
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