© Dukascopy Bank SA
Being that the trading range of USD/SEK has been recently narrowing, there is a high possibility of a rising wedge emerging. And while the pattern itself usually implies a sell-off, right now the U.S. Dollar is likely to respect the up-trend at 6.86, which is also reinforced by the daily S1 and 200-day SMA), and try to surpass the Jul 31 high in order to reach the upper trend-line of the figure at 6.9243. There the bears will be expected to take control of the market and push the price South. On the other hand, if the demand at 6.87-6.85 proves to be insufficient, the currency pair will most likely decline down to 6.81, namely the Jul 25 low.
© Dukascopy Bank SA