Patterns: EUR/SEK, EUR/CZK
|EUR/SEK 1H Chart: Ranging near resistance level
The bearish movement was guiding the EUR/SEK exchange rate since early May until the bottom channel boundary of the senior channel was reached at 10.10 mid-June. The pair bounced of this line and initiated a new wave upwards.
By mid-Friday, the Euro had reached the 10.35 mark which has provided strong support and resistance during the past three months. It is also apparent that the rate has breached the junior channel, the weekly R1 and the 55– and 100-hour SMAs.
Taking this into account, it is expected that the Euro edges lower during the following hours towards the strong support of the 200-, 100– and 55-period (4H) SMAs at 10.25. This level could cause a reversal back to the upside and a continuous surge towards 10.60 within the following two weeks.
EUR/CZK 1H Chart: Pair returns to ten-month high
EUR/CZK reversed from the senior channel at 25.95 late in May and began edging lower. This movement downwards was halted by the 50.00% Fibonacci retracement at 25.00.
The Euro has since remained near the bottom boundary of a newly-drawn junior pattern, thus showing that the bullish momentum which has prevailed in the market since mid-April is starting to allay. The pair re-tested the senior channel—its highest position since October 2018— again this week.
It is expected that the pair continues to decline, setting the senior channel line near 25.35 as a possible target within following two or three weeks. The nearest support of importance is the junior channel, the 38.20% Fibonacci retracement and the 200-period (4H) SMAs at 25.70.
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