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The pattern started when the pair rebounded from 80.557 and after testing pattern's support twice it slowed down mildly above SMA200 at 79.380 where the pair is currently trading. The technical indicators on aggregate on 4H time horizon point at appreciation of the pair. The SWFX market sentiment shows that 75% of the traders expect further appreciation of the pair as well. Long traders could set the first target at the daily pivot (R2)/recent high at 79.346/348. If this level is breached, next targets could be at the Fibonacci retracement (61.8% of monthly move) at 79.494 and daily pivot (R3) at 79.637.
The RSI and the Stochastic indicators on 4H time horizon point at depreciation of the pair indicating that we should see a price correction. Technical indicators on aggregate point at depreciation of the pair on 1W outlook supporting the probability that the pair might drop closer to 200 day SMA. Short traders should focus on the daily pivot (R1) at 79.179. If this level is breached, next targets could be 15th of August peak at 79.055 and daily pivot (PP) at 78.888.
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