Loading...
by Charalambos Pissouros

EUR/SEK Confirms a Forthcoming Lower Low

EUR/SEK tumbled during the European morning Friday, breaking below the support (now turned into resistance) barrier of 10.730, marked by Wednesday’s and Thursday’s lows. The move confirmed a forthcoming lower low on the 4-hour chart, which, combined with the fact that the rate has already been printing lower highs, paints a negative short-term picture in our view.

We expect the bears to stay in the driver’s seat for a while more and perhaps challenge the 10.680 zone soon, which is fractionally above the low of May 3rd. If they prove strong enough to overcome it, then we may see them aiming for the low of the previous day, at around 10.655. Another break, below 10.655, could carry more bearish implications and perhaps pave the way towards our next support, at 10.615, defined by the low of April 30th.

The RSI slid after it hit resistance near 50 and just touched its toe below its 30 line. The MACD, already negative, has crossed below its trigger line and points down as well. Both indicators detect strong downside speed, which corroborates the case for some further near-term declines.

On the upside, we would like to see a decisive rebound above 10.760 before we start examining whether the bears have left the field. Such a move may also drive the pair above the short-term downside resistance line drawn from the peak of May 13th. The bulls may then get encouraged to drive the action towards the 10.800 area, near the highs of May 20th and 21st, the break of which could allow extensions towards the peak of May 13th, at around 10.850.

EUR/SEK 4-hour chart technical analysis

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.

70% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT