USDSEK Reversal Pattern after All Time New Highs!
USDSEK has been on my watchlist for quite sometime after we made new all time highs and then produced large red candles showing no momentum in the break.
You can see we tried to create another higher high, but price was rejected and reversed at 9.7280.
You can see the head and shoulders pattern which has occurred after making multiple higher lows and higher highs in an uptrend. This is ideal as we want to see an established trend before a reversal pattern.
We did break the neckline yesterday and have seemed to retest the breakout zone with todays daily candle, with the wick retesting the zone and indicating sellers stepping in.
I do not use trendlines very much, but also shows a break of the trend so adds some more confluence.
EURSEK was a trade I covered and took a few weeks back, and it can still make another lower high. Perhaps there is still ways downward for the Swedish Krona.
I am looking to take profits at the flip zone of 9.30 in the long term, although I would expect to see some reaction at 9.45.
You can see we tried to create another higher high, but price was rejected and reversed at 9.7280.
You can see the head and shoulders pattern which has occurred after making multiple higher lows and higher highs in an uptrend. This is ideal as we want to see an established trend before a reversal pattern.
We did break the neckline yesterday and have seemed to retest the breakout zone with todays daily candle, with the wick retesting the zone and indicating sellers stepping in.
I do not use trendlines very much, but also shows a break of the trend so adds some more confluence.
EURSEK was a trade I covered and took a few weeks back, and it can still make another lower high. Perhaps there is still ways downward for the Swedish Krona.
I am looking to take profits at the flip zone of 9.30 in the long term, although I would expect to see some reaction at 9.45.