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.
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