Strong upside potential has been guiding USD/SEK since mid-April. The pair had breached a long-term channel down earlier in the month prior to gaining the necessary momentum to reach the 8.87 mark—the rate’s highest position since July, 2017. Along the way, the pair breached a three-month ascending channel near 8.75 that should point to further appreciation.
However, it is expected that bulls soon exhaust their upward momentum and allow bears to form a correction south. The prevailing channel suggest that the US Dollar could still edge slightly higher in this session towards the 8.90/95 area.
Subsequently, the pair should aim for the lower boundary of this pattern circa 8.75 in the short term and further down to the 50.0% Fibonacci retracement at 8.62 within the following two weeks.