USD/SEK 1H Chart: Pair tests mid-2017 high
Strong upside potential has been guiding USD/SEK since mid-April. The pair had breached a long-term channel down earlier in the month prior to gaining the necessary momentum to reach the 8.87 mark—the rate’s highest position since July, 2017. Along the way, the pair breached a three-month ascending channel near 8.75 that should point to further appreciation.
However, it is expected that bulls soon exhaust their upward momentum and allow bears to form a correction south. The prevailing channel suggest that the US Dollar could still edge slightly higher in this session towards the 8.90/95 area.
Subsequently, the pair should aim for the lower boundary of this pattern circa 8.75 in the short term and further down to the 50.0% Fibonacci retracement at 8.62 within the following two weeks.
However, it is expected that bulls soon exhaust their upward momentum and allow bears to form a correction south. The prevailing channel suggest that the US Dollar could still edge slightly higher in this session towards the 8.90/95 area.
Subsequently, the pair should aim for the lower boundary of this pattern circa 8.75 in the short term and further down to the 50.0% Fibonacci retracement at 8.62 within the following two weeks.
Namely, there exists a medium term channel down pattern, which is guiding the rate lower. The initial decline was just the first move in the borders of the medium scale channel.
The rate recently bounced off the support of the medium pattern and on Friday was half way to the upper trend line of the medium pattern. Most likely the rate will meet resistance near the 8.90 mark.