© Dukascopy Bank SA
Initially, USD/SEK appeared to be trading in a bullish channel. However, as it turns out in a longer-term perspective, there is a strong case for the rising wedge to emerge. This would pose a significant risk for the latest rally (developing since mid-March), as the formation usually portends a reversal.
The near-term downside risks are also substantial, being that right now the currency pair is facing an upper resistance trend-line at 6.5137, meaning that the next most likely move is a dip down to 6.4411, where the rising support line is reinforced by the 200-period SMA and thus should prove to be difficult to breach.
© Dukascopy Bank SA