Chart of the day: USD/SEK

Blake Morrow Forex Analytix

I'm going to make an assumption shorts have been leaning on the USDSEK in recent weeks as the pair had a false breakout in August above 8.8000. The false breakout formed the "head" of the head and shoulder pattern. But what USDSEK bears may have been thinking is that the stocks would continue higher towards all time highs and send the USD lower across the board. With stocks looking weak, the risk (now) may be for a squeeze higher in the USD, and this could risk "negating" the setup and squeezing shorts. A move back above the 8.6650 level could squeeze the pair back toward the 8.8000+ level again.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

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