{"id":14523,"date":"2010-10-26T14:38:59","date_gmt":"2010-10-26T18:38:59","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=14523"},"modified":"2010-10-26T14:38:59","modified_gmt":"2010-10-26T18:38:59","slug":"eursek-likely-to-drop-following-spike","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/10\/26\/eursek-likely-to-drop-following-spike\/","title":{"rendered":"EUR\/SEK Likely to Drop Following Spike"},"content":{"rendered":"<p><strong>By Dan Eduard<\/strong> &#8211; EUR\/SEK saw a massive spike of almost 1500 pips on Tuesday, following <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2010\/10\/26\/sek-tumbles-against-its-currency-rivals\/\">comments from Sweden\u2019s central bank<\/a> regarding future interest rate hikes.  While the pair is still moving  up, technical indicators are showing that a downward correction is  likely to occur in the near future.  Krona traders will want to pay  close attention to the pair<\/p>\n<p>We will be looking at the daily chart  for EUR\/SEK provided by Forexyard.  The technical indicators being used  are the Williams Percent Range, <a href=\"http:\/\/www.forexyard.com\/en\/relative-strength-index-rsi\">Relative Strength Index (RSI)<\/a> and <a href=\"http:\/\/www.forexyard.com\/en\/moving-average-convergence-divergence-macd\">MACD<\/a>.<\/p>\n<p>1. The Williams Percent Range is currently right above the -20 level.   This is typically seen as a sign that the pair is in overbought  territory and may correct itself in the near future.  Should the  indicator continue to move up, the bigger the chance that a reversal  will take place.<\/p>\n<p>2. The Relative Strength Index has not yet approached overbought  territory, but appears likely to approach that area shortly.  Currently  the RSI is right around the 60 level.  If traders see the indicator go  above 70, it can be taken as a sign that downward pressure exists for  the pair.<\/p>\n<p>3. Finally, the MACD has formed a bearish cross, indicating that a  reversal is likely to take place in the near future.  Traders will want  to watch out for a sudden correction for this pair, as significant  profits can be made when the downward breach occurs.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/10\/chart-26.102.bmp\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/10\/chart-26.102.bmp\" alt=\"\" width=\"545\" height=\"492\" \/><\/a><\/p>\n<p><em><strong>Forex <\/strong><strong>Market Analysis provided by <a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">ForexYard.<\/a><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                                                                                                                        may     not    be               suitable         for         all                        investors.                  There          is    a                                                possibility                  that                       you               could                      sustain a     loss              of     all            of            your                                          investment      and                                  therefore     you                             should       not                     invest                      money        that         you                              cannot                  afford to                         lose.     You                           should         be               aware           of                  all           the           risks                                  associated             with                  Foreign                       Exchange                            trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Dan Eduard &#8211; EUR\/SEK saw a massive spike of almost 1500 pips on Tuesday, following comments from Sweden\u2019s central bank regarding future interest rate hikes. While the pair is still moving up, technical indicators are showing that a downward correction is likely to occur in the near future. Krona traders will want to pay &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/10\/26\/eursek-likely-to-drop-following-spike\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;EUR\/SEK Likely to Drop Following Spike&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14523","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=14523"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14523\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=14523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=14523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=14523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}