EUR/SEK Pair Has Been On Uptrend Since September

The EUR/SEK is a pair that has a reasonable spread, and features two of the currencies bundled in the US Dollar Index. Because of this, I feel that although it isn’t a major pair, it is a very tradable one. After all, the euro is obviously a currency that has a lot of interest, and the Swedish krona is a currency that can be best reflected by the Swedish stock exchange, and the thirst of international investors to reap profits from a “peripheral” economy. The Swedish stock exchange is widely influenced by foreign investment, and Europe is one of the biggest contributors to this influence.

The attached daily chart shows that the pair has certainly been in an uptrend since September, and we have formed a few hammers and shooting stars in the recent past. This suggests to me that the pair is at a “decision point” at the moment, and the pair will have to make its move soon. The uptrend line is one that seems reasonable and well-formed, so I think it should continue to pressure this pair higher. On top of that, the 100 day EMA is plotted on the chart, and as you can see – suggests that there will be dynamic support as well in this area.

Because of this, I would be a buyer on a break above the 8.9 level, and suspect that we will continue much higher over the next several weeks. In fact, I would be targeting the 9.05 level at least. The recent long and red candle was from the announcement that Credit Suisse was suddenly “bearish” of the euro. However, even if the euro falls – this will certainly still do better than the krona, as it is considered “safer” overall.

On the other hand, if we close significantly below the uptrend line, this pair will suddenly become a bearish one, and we could see a grind lower over time. However, I would suspect that is the least likely of moves at this point.

EUR/SEK Daily Chart" title="EUR/SEK Daily Chart" width="452" height="484">