By Dan, ForexYard – The following is the Forexyard daily chart for EUR/SEK. As will be shown through a variety of technical indicators, following a prolonged downward trend the pair is due for a bullish correction.
The technical indicators used are the Bollinger Bands, Relative Strength Index (RSI) and Stochastic Slow.
1. The tightening of the Bollinger Bands at the lower support line indicates that a drastic price change may occur in the near future. While the direction of the price change is not yet known, our other technical indicators will paint a clearer picture of where the pair is headed.
2. As seen in our chart, the RSI line is dipping below the lower support line. This typically indicates that an upward correction should take place in the very near future.
3. Our theory of an imminent bullish correction is further substantiated by the Stochastic Slow. As seen in the chart, the lines are crossing below the lower support line. This is usually an indication that an upward correction is likely to occur.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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