USD/SEK may rise 486 - 716 pips

Our pivot point stands at 10.6250.

Our preference

The upside prevails as long as 10.6250 is support.

Alternative scenario

The downside breakout of 10.6250 would call for 10.5860 and 10.5630.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 10.6208 and 10.5922). Finally, the USD/SEK is trading above its upper Bollinger band (standing at 10.6592).

Supports and resistances

10.7790 **

10.7560 *

10.7330 **

10.7100

10.6614 last

10.6400

10.6250 **

10.5860 *

10.5630 **

Number of asterisks represents the strength of support and resistance levels.