EUR/SEK Rebounds from an Upside Support Line
|EUR/SEK traded higher yesterday, after it hit support slightly below the crossroads of the 10.625 barrier and the upside support line drawn from the low of April 1st. The recovery continued today as well, and the rate now looks to be heading towards the 10.715 area, which provided decent resistance between June 12th and 14th. As long as the pair continues to trade above the aforementioned upside line, we will consider the outlook to be positive, but we prefer to wait for a move above 10.715 before we get more confident on that front.
A clear break above 10.715 would confirm a forthcoming higher high on the 4-hour chart and may initially aim for the 10.736 level, defined by the peak of May 27th. If the bulls are willing to continue above that line as well, then we may see them challenging the 10.760 area, which is marked by the peaks of May 23rd and 24th. Another break, above 10.760, could carry more bullish implications, perhaps paving the way towards the highs of May 20th and 21st, at around 10.800.
Shifting attention to our short-term oscillators, we see that the RSI stands above 50 and points north. It looks to be heading towards 70. The MACD, already above its trigger line, has just entered its positive territory. Both indicators suggest that the rate has started gathering upside speed and support the notion for some further advances.
On the downside, we would like to see a clear dip below 10.625 before we start assessing the chances of the bears taking the upper hand. Such a move would also bring the rate below the aforementioned upside line and could initially see scope for declines towards the 10.590 hurdle, which stopped the rate from dropping lower between May 31st and June 6th. If that level fails to withstand the bear pressure this time, another slide towards the low of April 26th, at around 10.565, could be possible.
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