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The_STA
Sep 19, 2023 10:52 AM

Key day reversal on USD/SEK Short

U.S. Dollar/Swedish KronaFXCM

Description

We've observed a bearish key day reversal on the daily USD/SEK chart. This pattern typically forms when the market reaches both a new high and a new low compared to the previous day's trading range and closes below the previous day's low. It's crucial to note that there should be a previous upward movement in the market for this pattern to be significant.

In addition to this, we've noticed a weakening of upward momentum, as indicated by the divergence in the daily Relative Strength Index (RSI). All these factors suggest a significant loss of upward momentum in anticipation of the Federal Reserve's announcement tomorrow.

If you are currently invested in this market, it might be wise to consider tightening your stops!
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