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.
Read more forex trading news on our forex blog.
