Yesterday, we featured the GBPSEK and the emergence of a possible bull trend. The EURSEK is looking just as appealing with a slightly more advanced setup with price action and hence why our long trades were placed.
Like several currencies that we have highlighted, this currency was also in a period of consolidation that dated back to last year. Price eventually broke of consolidation in February of this year which also took price above the key round number of 10.0000.
With this level now acting as support, we wanted to see a retest of this level which did happen in March. Since then, price has bounced off this level and has offered multiple entry points in the form of pullbacks and breakouts as this bull trend has continued.
The EURUSEK has been trending very well since bouncing off the that involved the 200SMA at the end of January of this year. The trend structure that has emerged is linear with clean pullbacks that have retested the resistance-turned-support levels.
It is very much early days on this currency. We would like to see this trend structure continue all the way through to the all time high in 2009 which was just short of 12.0000, offering strategic opportunities to compound on its ascent.
If 12.0000 resistance is broken then 15.0000 would be the next key level.
This is certainly one of the more appealing trends in the FX market right now.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!