USD/SEK 4H Chart: Channel Down

In the short-term the US Dollar is capable of sliding down to the first weekly support line at 8.0384 that is the nearest demand level for its currency pair with the Swedish Krona. Although a temporary break is possible, we estimate more losses on the side of the Greenback, and our views are shared by 4H and daily technical indicators. Weekly studies are also leaning in the bearish direction, even though the aggregate signal remains mixed. Adding to that, the cross is still heavily overbought in the SWFX market as 72% of all trades are bullish. A new leg up is unlikely to happen until 7.95 where USD/SEK will face some demand represented by the green trend-line, weekly S2 and monthly S1.