The USD/SEK pair presents a compelling technical setup with recent price action suggesting potential downward movement. The charts reveal a double top pattern, indicating a possible trend reversal from bullish to bearish.
Top 1: Approximately 10.91
Top 2: Slightly below 10.91
Neckline: Around 10.80
The double top suggests bearish reversal with a target near the 10.60 region.
Price is testing the upper boundary of the cloud, indicating a potential bearish breakout.
Base Line (Kijun-sen): 10.77, acting as immediate support.
Short Position:
Entry: 10.84 (current level)
Target 1: 10.70 (conservative target)
Target 2: 10.60 (aggressive target based on double top projection)
Stop Loss: 10.91 (above the recent double top)
Long Position (for a potential reversal):
Entry: 10.65 (upon hitting the lower target)
Target 1: 10.80 (retracement to neckline)
Target 2: 10.90 (retest of double top)
Stop Loss: 10.58 (below the lower target)
Time Frame:
This idea is expected to unfold within the next 5-10 trading days, with initial targets possibly being reached within the first 3-5 days.
Given the double top formation and the bearish signals from the indicators, a short position on USD/SEK seems favorable with close monitoring of key levels for potential reversal points. Traders should remain vigilant of any shifts in momentum or news that could impact the currency pair’s direction.
Top 1: Approximately 10.91
Top 2: Slightly below 10.91
Neckline: Around 10.80
The double top suggests bearish reversal with a target near the 10.60 region.
Price is testing the upper boundary of the cloud, indicating a potential bearish breakout.
Base Line (Kijun-sen): 10.77, acting as immediate support.
Short Position:
Entry: 10.84 (current level)
Target 1: 10.70 (conservative target)
Target 2: 10.60 (aggressive target based on double top projection)
Stop Loss: 10.91 (above the recent double top)
Long Position (for a potential reversal):
Entry: 10.65 (upon hitting the lower target)
Target 1: 10.80 (retracement to neckline)
Target 2: 10.90 (retest of double top)
Stop Loss: 10.58 (below the lower target)
Time Frame:
This idea is expected to unfold within the next 5-10 trading days, with initial targets possibly being reached within the first 3-5 days.
Given the double top formation and the bearish signals from the indicators, a short position on USD/SEK seems favorable with close monitoring of key levels for potential reversal points. Traders should remain vigilant of any shifts in momentum or news that could impact the currency pair’s direction.