News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • What are some technical and fundamental factors affecting the equities market? Get your free forecast here: https://t.co/YQG1aaIT8C #DailyFXGuides https://t.co/TEoSjMpMBo
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/H9fW9ewiQd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/yLt0ldtMsV
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/ZwwuTzTeac
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/4DGXwA8vqs
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/mAMhWbV6Jy
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/E9ZmJvqO0z
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here: https://t.co/S8UoHzOwFN https://t.co/qI6UZdggvM
A Textbook Bear Flag Set-up in USD/SEK

A Textbook Bear Flag Set-up in USD/SEK

Liam McMahon, Head Forex Trading Instructor

The Swedish krona (SEK) appreciated rapidly following the recent FOMC policy decision, and now, a breakout from a bear flag pattern could present an excellent near-term short opportunity in USDSEK.

The Swedish krona (SEK) is a thinly traded currency, but in my opinion, that is a serious oversight on the part of forex traders. In fact, the USDSEK is traditionally a very technical pair, and one that provides some wonderful trading opportunities, much like the one that seems to be developing right now.

After a significant drop following the Federal Open Market Committee (FOMC) decision to delay tapering of asset purchases, USDSEK has been trading in a classic bear flag pattern on both the daily and four-hour charts. Major resistance sits at 6.500, which is a re-test of the major trend line that ran from February to September. A breakdown out of the flag would target new lows below 6.2.

Guest Commentary: The Bear Flag Pattern in USD/SEK

A_Textbook_Bear_Flag_Set-up_in_USDSEK_body_GuestCommentary_LMcMahon_September26A.png, A Textbook Bear Flag Set-up in USD/SEK

The 50-day exponential moving average (EMA) sits at 6.515, adding further significance to this level. Bears should keep a careful eye on the developing flag, however, and look to trade a break of the lower flag boundary.

Below the 6.4 level would be a great start to the next leg down, and only a move back above that 6.500 figure would call this bearish case into doubt. Until then, the downside potential remains firmly in place, providing a potentially compelling technical set-up in USDSEK.

By Liam McMahon, Currency Strategist, GlobalFxClub.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES