Candlestick analysis of the USD/SEK for 15/10/2010

The USD/SEK currency pair turns back slightly after refreshment of a new annual minimum. The view on the currency pair remains bearish, as the USD/SEK continues trading in a downward trend.

Earlier at 4-hour graph the USD/SEK formed a combination of “Bearish Engulfing” candlesticks, which gives a downward signal. This candlestick formed after that the currency pair made a rollback to the upper line of the downtrend. However, near 6.9240 the “bears” started increasing their presence. 
The last lowering means that this point of view is correct. The breakthrough of October minimum in 2009 – 6.7472 targeted the currency pair to 6.4420.
Worth pointing out if the resistance level 6.7170 will be broken through then short positions should be closed, as it will mean that the downside trend is broken through.

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