FX.co ★ The USD/SEK candlestick analysis for October 12, 2010

The USD/SEK rolls back from the mark of 6.60. However, at present the viewpoint on the currency pair remains bearish, as the USD/SEK continues to trade in the downtrend.
Earlier on a 4-hour chart, the USD/SEK had formed the combination of candlesticks Bearish Engulfing, thus signaling about downward movement. This candlestick was formed after the currency pair moved to the upper limit of the downtrend. Nevertheless, the bears started to increase their presence near 6.9240.
The further decline confirms this point of view. The breach of October 2009 low – 6.7472 will set a target to 6.4420 for the currency pair.
It is worth to mention, if the resistance level of 6.7395 is breached, then short positions should be closed, since it will denote the breakthrough of the downtrend.