EUR/SEK Looks Set To Escape A Sideways Trading Range
JFD Team | Oct 05, 2021 07:34AM ET
EUR/SEK traded lower today, after it hit resistance slightly below the 10.160 barrier, marked by the high of Oct. 4. Overall, the rate has continued trading in a trendless mode between 10.113 and 10.217 since Aug. 27.
Therefore, despite the rate’s proximity to the lower end of the range, we will stay neutral.
An apparent dip below 10.113, or a break below 10.100, which is the low of Jun. 30, could confirm the end of sideways trading and may initially pave the way towards the low of Jun. 15, at 10.075.
If the bears are not willing to stop there, a lower break may encourage declines towards the 10.040 territories, defined as a support by the lows of June 10 and 11.
Shifting attention to short-term oscillators, we see that the RSI remains between 30 and 50 and has recently turned down, while the MACD lies below zero and trigger lines.
Both indicators detect negative momentum and support the notion for a potential downside exit of the range and subsequent declines.
To start examining the bullish case, we would like to see EUR/SEK emerging above the upper end of the sideways range, at 10.217.
This may wake up more bulls, who may get encouraged to push the action towards the 10.251 zone, near the highs of Aug. 26 and 27.
If they don’t stop there, the following territory to consider as resistance may be near 10.297, marked near an intraday swing high formed on Aug. 23.
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