© Dukascopy Bank SA
As USD/SEK failed to cross the Jun 12 high at 6.7082, it was forced to decline. Considering that the currency pair formed a bearish channel, the sell-off is likely to persist. Moreover, most of the hourly and four-hour technical indicators are pointing downwards, hardening the case of further depreciation of the U.S. Dollar.
In order to confirm this USD/SEK needs to bounce off the upper boundary of the pattern at 6.6394 and then plunge down to the lower boundary at 6.6106, which is currently reinforced by the daily S1. At the same time, most of the market participants expect the greenback to underperform—merely 28% of positions are long.
© Dukascopy Bank SA