Patterns: USD/SEK, EUR/SEK
|USD/SEK 4H Chart: Bears could prevail
Since the end of September, the USD/SEK currency pair has been trading downwards within a descending channel.
From a theoretical point of view, it is likely that the exchange rate could continue to decline within the predetermined channel in the medium term. In this case the rate could decline below 8.7000 by the middle of November.
Meanwhile, note that the currency pair could gain support from the 55-, 100– and 200-period moving averages in the 8.7890/8.8685 area. Thus, a breakout north could occur, and the pair could target the Fibo 50.00% at 9.1473.
EUR/SEK 4H Chart: Bulls could prevail in medium term
The EUR/SEK exchange rate has been trading downwards within a falling wedge pattern since the end of September.
From a theoretical perspective, it is likely that some downside potential could prevail in the market within the following trading sessions. Then, the currency pair could breach the given pattern north and target the 10.70 level.
In the meantime, it is unlikely that bears could prevail in the market, and the exchange rate could decline below 10.20 due to the support level formed by the Fibo 50.00%.
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