I don’t know why many people choose not to trade the Scandies. They ebb and flow like any other currency pair and guess what…they can give trade setups with high profit potential like any other currency pair!
USDSEK looks good to trade and trade south. We have several factors which point to a sell and, although nothing is guaranteed, as technical traders we are left to work with probabilities.
So what are these probabilities? Let’s build up the case:
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Yesterday (Wednesday) closed as a bearish pin bar reversal on the daily timeframe. Also known as a high test bar, these are a good tell tale that price action has been rejected sharply and a fall is potentially imminent after the bears have asserted their dominance.
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The bearish pin bar reversal is rejecting a trendline which has been rejected three times previously (June 2010, May 2012, July 2013) and cyclicity is making lower peaks.
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The tip of the bearish pin bar reversal is rejecting 6.7000 – a round psychological number
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This round psychological number also intersects with a well respected, horizontal level.
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The pin bar reversal is also rejecting the weekly and monthly R2 levels (hidden levels of resistance)
