ExoticTrading is a series of analyzes, which is created in collaboration with the broker InterTrader and is published on Comparic every Monday, Wednesday and Friday. The theme as the name suggests are so called- exotic currency pairs.
Since last Thursday the market is realizing our earlier projection and moves to the south forming a downward correction after Tuesday’s rally when the Euro strengthened to SEK by 1.15% and were the highest since May 2010.
In the near future we can expect a continuation of declines and test bullish zone in the area of support 9.6668 coinciding up with three consecutive Fibonacci measurements levels – 50%, 61.8% and 70.7%
After the dynamic increases in September for nearly four weeks we observe strong dynamic decreases which defeated the last line of the uptrend. If in the near future demand does not negate last breakout, then we could expect declines to continue even in the area of levels of 18.2645, 18.0730 or 17.9311.
But we should also consider pro-growth scenario because the downward gap from 10/9/2016 has still not closed.
Almost from the beginning of the week we observe dynamic decreases which yesterday defeated the uptrend line and two support levels: 13.9873 and 13.9213. Given a slowdown in the near future we expect a correction of growth and re-test of the trend line in the area of local resistance 14.1100 coinciding with the levels of momentum 50% correction of the last impulse and the 38.2% Fibonacci of the whole downward movement.