USDSEK testing the strong long-term support
USDSEK probably the best proxy out there for the USD strength or a weakness is testing the long-term support confluence channel support and horizontal 8.6000. We are within a long-term uptrend channel with well-defined breakout levels. For the clear downside reversal continuation from here, we need to see a price action break below the mentioned 8.6000. A break and a follow-through above the formed sharp falling wedge 8.7900 is required for the upside bounce and a continuation after the pullback.
On a daily chart, we can see that the pair is retesting the wedge support line 8.6017. Look for the long trade entry with the stop loss below 8.6000 and a profit target of 8.7900 near-term upon a bounce off this support. Our trading system is indicating a potential of 200-300 pips of profit. The short trade entries invalidation to come only on a clear daily close below 8.6000 and would trigger stops and you can reverse to a short trade.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
