Forex Strategy: Stay Short EURSEK
I sold EURSEK at 8.7315 after prices completed a bearish Evening Star candlestick pattern at channel and 61.8% Fibonacci retracement resistance. I am expecting Risksbank to switch to a neutral policy stance after December’s rate cut while the ECB begins easing in 2013 as falling “PIIGS” bond yields mark normalization of monetary policy transmission. A break below support at 8.5511 exposes downside targets at 8.4047 and 8.1682. A stop-loss will be triggered on a daily close above 8.7941.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.