EUR/SEK Confirms a Forthcoming Lower Low

EUR/SEK tumbled during the European morning Friday, breaking below the support (now turned into resistance) barrier of 10.730, marked by Wednesday’s and Thursday’s lows. The move confirmed a forthcoming lower low on the 4-hour chart, which, combined with the fact that the rate has already been printing lower highs, paints a negative short-term picture in our view.

We expect the bears to stay in the driver’s seat for a while more and perhaps challenge the 10.680 zone soon, which is fractionally above the low of May 3rd. If they prove strong enough to overcome it, then we may see them aiming for the low of the previous day, at around 10.655. Another break, below 10.655, could carry more bearish implications and perhaps pave the way towards our next support, at 10.615, defined by the low of April 30th.

The RSI slid after it hit resistance near 50 and just touched its toe below its 30 line. The MACD, already negative, has crossed below its trigger line and points down as well. Both indicators detect strong downside speed, which corroborates the case for some further near-term declines.

On the upside, we would like to see a decisive rebound above 10.760 before we start examining whether the bears have left the field. Such a move may also drive the pair above the short-term downside resistance line drawn from the peak of May 13th. The bulls may then get encouraged to drive the action towards the 10.800 area, near the highs of May 20th and 21st, the break of which could allow extensions towards the peak of May 13th, at around 10.850.

Chart - One-stop Multi-asset Experience for Trading and Investment Services



The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

83% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure:

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex Majors