USD/SEK may rise 526 - 766 pips

Our pivot point is at 10.4180.

Our preference

The upside prevails as long as 10.4180 is support.

Alternative scenario

The downside breakout of 10.4180 would call for 10.3790 and 10.3560.

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 positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 10.4167 and 10.4371). Finally, the USD/SEK is trading above its upper Bollinger band (standing at 10.4463).

Supports and resistances

10.5840 **

10.5610 *

10.5380 **

10.5140

10.4614 last

10.4340

10.4180 **

10.3790 *

10.3560 **

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