USD/SEK 1H Chart: Continues trading in neat patterns

21 Mar 2018

The historical price movement of USD/SEK demonstrates that the pair has a tendency to trade in neat channels. The past three weeks have not been an exception.

This latest junior pattern was formed late in February when the US Dollar reversed from the upper boundary of a medium-term channel circa 8.32 and began edging lower. Even if this short-term pattern fails to confine the rate any for long, it is still expected that the Greenback continues its movement south within the following two weeks until the senior channel is reached in the 8.10/12 area.

Two important support areas is the 55-, 100– and 200-hour SMAs and the weekly PP circa 8.20 and the weekly S1 and the monthly PP at 8.14. A breakout of the latter might set the pair for another decline down to the psychological 8.00 level.

26 Mar 2018

Yorum

As the US Dollar has strengthened during the last week, the USD/SEK pair’s channel down pattern, which represented the decline of March, was broken. This event has pressed for a early review of the currency exchange rate’s charts.

First of all it has to be mentioned that the Fibonacci retracement levels, which are measured by connecting the March high and low levels, are heavily affect the pair’s movements.

In regards to the near future the pair was expected to get squeezed in the 8.2050-8.2150 zone. Afterwards a break out to the downside was more likely to occur.