Market continues to grind out a major head and shoulders top for 8.4150.
EURSEK remains capped by 8.7190/8.7327 and more immediately by 8.6542/8.6627. The focus remains lower as the market continues to grind out a major topping structure which we flagged in a prior Market Spotlight late last year. The market has removed 8.5709 support and the focus now goes back on 8.5057/22 neckline support. We still expect an eventual breakdown through this support level and for the market to continue lower for chart/61.8% Fibonacci retracement support placed at 8.4164/08. Note also the 8.3065 78.6% retracement support level. Only a break above 8.7190/8.7327 neutralises the bearish skew, exposing 8.7945 again. Above the latter is required to see a recovery higher to 8.9576, and potentially then 9.0446.
Trade Strategy: Sell at 8.5700, add at 8.6100, targeting 8.4175, stop at 8.6750.
Credit Suisse