Patterns: EUR/SEK, USD/SEK
|EUR/SEK 1H Chart: Bears likely to prevail
The Euro has been depreciating against the Swedish Krona since the middle of October. This movement has been bounded within the falling wedge pattern.
As apparent on the chart, the exchange rate has already reversed south from the upper pattern line at 10.74. From a theoretical point of view, it is likely that some downside potential could prevail in the market, and the rate could continue to decline within the given pattern.
However, note that the currency pair is pressured by the 55-, 100- and 200-hour moving averages. Thus, it is likely that the pair could breach the given pattern south within the following trading sessions. A possible downside target is the Fibo 38.20% at 10.48.
USD/SEK 1H Chart: Rising wedge pattern in sight
The US Dollar has been appreciating against the Swedish Krona since the beginning of November. This movement has been bounded within the rising wedge pattern.
Currently, the currency pair is testing the lower pattern line at 9.6000. From a theoretical perspective, it is likely that some upside potential could prevail in the market, and the pair could reach the upper pattern line located circa 9.7800. If the given pattern holds, it is likely that the general direction is expected to remain north in the medium term.
However, note that the exchange rate is pressured by the 55-, 100- and 200-hour moving averages, currently located in the 9.6389/6.6686 area. Thus, the rate could breach the given pattern south. Important level to look out for is the monthly S1 at 9.4868.
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