USD/SEK 4H Chart: Channel Up

Starting from mid-March the U.S. Dollar has been on the rise against the Swedish Krona, as the support at 6.3257 proved to be tough. As a result, there is a bullish channel developing on the four-hour chart of USD/SEK.

However, being that the currency pair has just confirmed the resistance at 6.5724, we are expecting a bearish correction now. The dip could possibly extend down to 6.4786 without any direct threat to the longer-term positive outlook. But if the lower trend-line is broken, the sell-off could persist until the exchange rate encounters the 200-period SMA at 6.4462, even though most of the short-run technical indicators are giving ‘buy' signals.