© Dukascopy Bank SA
Pattern started on 12th of April, 2012, when pair started depreciating from 0.8320; currently it is trading at 0.8183; and gap between pattern's support and resistance narrows by 270 pips in 100 bar period. Technical indicators on aggregate point at appreciation of the pair on 1W horizon suggesting it should bounce from pattern's support. Long traders could focus on the 20 bar SMA at 0.8193, weekly pivot (R1) at 0.8221, Bollinger band at 0.8270, weekly pivot (R2) at 0.8286 and 12th of October high at 0.8320.
Technical indicators on aggregate point at further depreciation of the pair on 1D horizon. Current market sentiment is bearish as 68% of all open positions on the pair are short. In addition, 62% of all open positions on the pair are to go short. Short traders could focus on the weekly pivot (PP) at 0.8165, pattern's support at 0.8150, Bollinger band /weekly pivot (S1) at 0.8116/10 and weekly pivot (S2)/200 bar SMA at 0.8044/41.
Main fundamental events which could have significant impact on pairs development are FOMC Statement publication and Reserve Bank of New Zealand official cash rate announcement on 24th of October.
© Dukascopy Bank SA