The EUR/SEK is consolidating in a triangle chart pattern. Based on the long term trend of the pair the next move may be to the downside.
From February to early April the euro came off of its lows versus the Swedish krona only to consolidate its gains in a defined triangle chart pattern. Moving to the weekly chart it is apparent that the long term trend of the pair is to the downside. Therefore, traders may see the EUR/SEK to break below the rising lower boundary of the triangle pattern which comes in today at 8.8750. Initial resistance is found at the mid-March and April lows at 8.8550, followed by 8.7875, and finally at the March low at 8.700.
However, should the EUR/SEK break out higher from the consolidation pattern resistance would be found at the May high of 9.0730 and the April high of 9.1220.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
