Following the recent bullish session the euro saw against the Swedish krona, it now appears that the pair has reached its peak and may turn downward. Technical indicators are showing that a prolonged bearish correction is likely to occur, giving forex traders a great opportunity to open up sell positions at a great entry price.
We will be looking at the daily chart for EUR/SEK, provided by Forexyard. The technical indicators being examined are the Relative Strength Index, Stochastic Slow and Williams Percent Range.
1. The Relative Strength Index has already breached overbought territory and has turned downward. Traders can take this as a sign that there is a good chance that the pair is likely to move south.
2. The Stochastic Slow has formed a bearish cross right on the upper resistance line. This is a clear indication that the pair could see a downward correction in the very near future.
3. Finally, the Williams Percent Range has also broken into overbought territory and is pointing down. This lends further evidence to our initial claim that the pair is likely to turn bearish soon.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
