USD/SEK may fall 436 - 656 pips

Our pivot point stands at 10.4640.

Our preference

The downside prevails as long as 10.4640 is resistance.

Alternative scenario

Above 10.4640, look for 10.5000 and 10.5210.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 10.4649 and 10.4836). Finally, the USD/SEK has penetrated its lower Bollinger band (10.4330).

Supports and resistances

10.5210 **

10.5000 *

10.4640 **

10.4500

10.4326 last

10.3890

10.3670 **

10.3460 *

10.3250 **

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