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Short-term Trading Idea FX USD/SEK – Bull Speculation: Expected Forming of W-shape Pattern

Trading opportunities for currency pair: the USD/SEK has broken away from the support. A double top didn’t quite form. I’ll risk saying that we’ll see a W form with an 8.8359 target. This idea for growth will become invalid if we see a close of the weekly candle below 8.5544.

Background

My last USD/SEK idea came out on 24th August, 2015. Back then the price was 8.3516 and a double top was beginning to form on the weekly. I expected to see an initial fall to 8.0571 and then to 7.7231. The USD/SEK fell to 8.0924. At 2592 points the position went into the positive. It missed the first target by a whisker. The idea became invalid and we came out evens.

Current situation

At first a hammer formed. Then Draghi let us know his thoughts and market participants began to buy USD throughout the market. On 28th October, the US Fed will make a decision on its base rate. Buyers are currently pushing the dollar rate towards the 8.8359 resistance.

What’s interesting at the moment?

After the pinbar, the USD/SEK rose to 8.4995. With the current price pattern, there’s reason to believe that the USD/SEK will return to 8.8359. The triangle to crisis is a rare pattern, so I’m going for a W shaped pattern forming.

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Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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