USD/SEK surged during the European morning Wednesday, breaking above Tuesday’s peak at 9.1400, that way confirming a forthcoming higher high on the 4-hour chart. The pair has been trending north, above an upside support line, since January 11th and thus, we will consider the short-term outlook to be positive for now.
At the time of writing, the rate is testing the 9.1620 barrier, marked by the high of December 12th. If the bulls are strong enough to overcome it, then we may see them aiming for our next resistance zone, at around 9.2000, which is fractionally below the peak of October 31st. Another move higher, above 9.2000 could carry more bullish implications, perhaps setting the stage for the 9.2470 area, defined by the high of August 15th.
Turning our gaze to the short-term momentum indicators, we see that the RSI just poked its nose above its 70 line and continues to point north, while the MACD lies above both its zero and trigger lines, pointing up as well. Both technical studies detect accelerating upside speed and corroborate our view for some further advances.
On the downside, we would like to see a dip below 9.0900, as well as below the aforementioned upside support line, before we start leaning to the bearish side. Such a break could initially pave the way for the 9.0600 support zone, the break of which may allow the bears to target the 9.0250 hurdle, which stopped the rate from moving lower on Friday.