USD/SEK consolidation will be temporary - SocGen

Analysts at Societe Generale explain that the USD/SEK rally faltered after it failed to hold gains above the 2009 high of 9.34.

Key Quotes

“It then dipped towards a mildly descending channel at 8.69/8.67, which now also corresponds to an upward sloping trend and the 23.6% retracement from the 2013 lows. The pair is currently taking a pause and appears to have formed a double top near graphical levels of 9.10/9.16. The pattern suggests this phase of consolidation will be temporary, and once 8.69/8.67 gives way, USD/SEK could face a deeper correction towards 8.48, and even towards the August 2016 lows of 8.33/8.25. We now see an important hurdle at 9.10/9.16.”