EURSEK – Broke above channel resistance…Is a test of the 2014 high next?

Key Technical Bullets:

•  Has been trading in a downward trend-channel since mid-April
•  Found support into the 50% retracement at 8.9725
•  Bounced twice off the 55-day sma (bullish)
•  This was coincided by an RSI rebound off the key 40/45 zone (bullish)
•  Daily RSI broke above corresponding channel resistance prior to price (bullish)
•  Broke above channel resistance at 9.0425 – Effective upon a daily close above
•  Width of the channel pattern is ~1000 pips
•  Should channel become valid, measured move objective ~9.1425
•  This target comes in just above EURSEK’s 2014 high
Keep in mind that RSI still remains below the key 60/65 level – A break above would indicate a potentially renewed uptrend in price, and as a result this may be something to watch next week.

Key data/events which may influence EURSEK next week:

  • Monday – SW April PPI & Retail Sales, ECB President Draghi speaks
  • Tuesday – SW April Trade Balance, ECB President Draghi speaks
  • Wednesday – SW Apr. Household Lending, ECB M3, EU May Consumer Confidence
  • Thursday – German Bank Holiday
  • Friday –SW 1Q GDP, German April Retail Sales

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