EUR/SEK 1H Chart: Some upside potential still likely
EUR/SEK is being guided by several patterns, the most important of which are two opposing channels. The Euro breached the upper line of the more senior pattern earlier in this session when a strong hourly surge allowed it to move past the 9.96 mark.
This upside breakout of the four-month channel suggests that the bullish sentiment might continue dominating the market in line with the junior formation. However, some minor correction south is still expected, as the pair needs to relieve its overbought pressure. A possible point of reversal could be the 55-, 100– and 200-hour SMAs and the 61.80% Fibo near 9.92. The nearest upside target within the following sessions could be the 10.03 mark.
Given that this is likewise the highest level in several years, the Euro is likely to surrender under the bearish pressure near this high and begin depreciating in the medium term.
This upside breakout of the four-month channel suggests that the bullish sentiment might continue dominating the market in line with the junior formation. However, some minor correction south is still expected, as the pair needs to relieve its overbought pressure. A possible point of reversal could be the 55-, 100– and 200-hour SMAs and the 61.80% Fibo near 9.92. The nearest upside target within the following sessions could be the 10.03 mark.
Given that this is likewise the highest level in several years, the Euro is likely to surrender under the bearish pressure near this high and begin depreciating in the medium term.