EUR/SEK needs to erode the 2016 high at 10.0828 to maintain the break lower – Commerzbank

FXStreet Team FXStreet

EUR/SEK has severed its 2013-2020 uptrend. However, the pair has two more major support levels to overcome – the 55-month ma at 10.1574 and the 10.0828 2016 peak, analysts at Commerzbank apprise.

Key quotes

“Even though EUR/SEK has taken out its major uptrend of seven years and its 200-week ma at 10.2525, it has two more hurdles to cross – namely its 55-month ma at 10.1574 and the 2016 high at 10.0828. Hence we suspect that the market may not maintain its initial break lower. However, rallies will have no impact on the now bearish chart while capped by the 10.6648 September high.

“Near-term rallies should falter ahead of the 55-day ma, now at 10.3849, and we would look to sell rallies into the 10.3300/10.3800 band, looking for failure and a slide back to 10.0828.”

“Once below 10.0828 will target 9.7253, the December 2014 high and the 200-month ma at 9.5285.”

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FXStreet Team

FXStreet

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