© Dukascopy Bank SA
The pattern started when the pair rebounded from 1.5738 and slowed down at 1.5508 after testing pattern's lower band twice at 1.5487. Pattern's resistance band is at 1.5553. The SWFX market sentiment shows that slim majority (51%) of traders expect recovery of the pair. Technical indicators on aggregate do not suggest any clear emerging trends on 1H and 1D outlooks indicating that if double bottom pattern persists and pair is bound to recover it will not be fast and it is likely that pair will move to rectangle pattern. Long traders could set the first target at the 24th of July peak at 1.5521. If this level is breached next target would be at pattern's support band at 1.5553.
Technical indicators on aggregate point at further depreciation of the pair at 4H outlook. Short traders could focus on the pattern's lower band at 1.5487. If this level is breached it is highly likely pair will gain momentum and next targets might be at 13th of July low at 1.5415 and 12th of July low at 1.5394.
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