EUR/SEK remains bullish despite retreat from 8-year high.
EUR/SEK has advanced considerably after hitting a four-month low of 9.7435 on January 31, eventually recording an eight-year high of 10.2442 last week.
The pair has since lost some ground from March 7’s multi-year peak, with the retreat possibly coming on the back of an overstretched market – the Chikou Span seems to support this view. Still, the decline was unable to alter the short-term positive bias, with the Tenkan- and Kijun-sen lines remaining positively aligned.
Price advancing might meet a barrier around the current level of the Tenkan-sen at 10.1880, with stronger bullish movement turning the attention to last week’s eight-year high of 10.2442.
In case of declines, support could come around the 23.6% Fibonacci retracement level of the January 31 to March 7 up-leg at 10.1255. Further declines, which are likely to shift the near-term momentum to the downside, might meet support around the 38.2% Fibonacci mark at 10.0522. The range around this point also includes the Kijun-sen at 10.0571, as well as a previous top at 10.0313.
EUR/SEK’s medium-term picture is bullish: price action is taking place above the Ichimoku cloud, as well as above the 50- and 100-day moving average lines, with both lines maintaining a positive slope. The bullish (golden) cross that was recorded in November when the 50-day MA moved above the 100-day one remains in place as well.
Overall, both the short- and medium-term outlooks are looking positive at the moment.
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