EUR/SEK traded lower today, after it hit resistance slightly below the 10.160 barrier, marked by the high of October 4th. Overall though, the rate continues to trade in a trendless mode between 10.113 and 10.217 since August 27th. Therefore, we will stay neutral, despite the rate’s proximity to the lower end of the range.
A clear dip below the lower end of the range, at 10.113, or even better, a break below 10.100, which is the low of June 30th, could confirm the exit of a sideways trading and may initially pave the way towards the low of June 15th, at 10.075. If the bears are not willing to stop there, a break lower may encourage declines towards the 10.040 territory, defined as a support by the lows of June 10th and 11th.
Shifting attention to our short-term oscillators, we see that the RSI remains between 30 and 50, and has recently turned down, while the MACD lies below both its zero and trigger lines. Both indicators detect negative momentum and support the notion for a potential downside exit of the range and subsequent declines.
In order 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 August 26th and 27th. If they don’t stop there, the next territory to consider as a resistance may be near 10.297, marked near an intraday swing high formed on August 23rd.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.90% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.