USD/SEK: Rebounds are likely to be limited - Natixis

In view of the analysts at Natixis, a descending channel is developing in the daily chart and weekly indicators have turned markedly bullish for USD/SEK, leading to a deterioration of the medium-term technical configuration (ascending channel that had formed in the weekly chart is being undermined).

Key Quotes

“Under these conditions, any rebounds are likely to be limited. Keep an eye on the support at 8.9090 (lower band of daily Bollinger and lower bound of May 2016 to December 2016 ascending channel): if it gives way, this will release significant downside towards 8.7580 (9-month moving average) before the support at 8.5820 (monthly Bollinger moving average).”

“Take advantage of any rebounds towards 9.0440 to sell the USD/SEK, with as major target 8.5820 (setting the stop loss above 9.1570).”