USDSEK completes AB=CD

A day like today when broad USD weakness came inadvertently from EUR strength, it’s easy to look at a pair like the USDSEK and think “it’s breaking down” after breaking some horizontal support. But what we notice is the pair closed on the 200dma and completed an AB=CD formation. The 8.4900 level is the 50% retracement of the Jan 2021 lows to August highs. We are not buyers (yet) but a move lower and bounce back above the 8.5500 level may trigger a short squeeze we’d want to be part of.

Blake Morrow