© Dukascopy Bank SA
The pattern started when the pair dipped from 78.379 before bouncing from pattern's support at 77.951; currently it is trading at October high/Bollinger band at 78.897. Technical indicators on aggregate point at appreciation of the pair on 1H and 1D horizon. The SWFX market sentiment is bullish as 73% of traders hold long positions on the pair expecting its appreciation. In addition, 75% of all pending orders in 200 pips range from current market price are to buy. Long traders could focus on daily pivot (R1)/pattern's resistance at 71.996 and daily pivot (R2) at 79.196.
The Stochastic indicator on 4H horizon sends sell signal suggesting we might see a bearish correction in the near future. Short traders could focus on 20 bar SMA at 78.774, daily pivot (PP)/Bollinger band/Pattern's resistance at 78.695/665, Fibonacci retracement (61.8% of 5th to 11th of October move) at 78.522 and daily pivot (S1)/200 bar SMA at 78.466/432.
© Dukascopy Bank SA