EUR/SEK - Forex Position Trading

Position: Long (Position Trade) with pending short at 8.50 (If we break support) Target at 8.42 on the short.
NOTE: This may not be an option for many U.S. citizens as you are not allowed to hedge you can get around this by trading with a bank and not a Broker.

I know that everyone seems to have their own opinion of what position trading is. I will define my forex position trading style as I was taught by my Mentors on Wall Street. I hold my trades often for more than 1 month if needed to achieve my trade objective. I use fundamental analysis when I position trade more than any technical indicators, as I am trading based on longer term outlook. I will keep the important weekly key levels on my charts to help me when position trading.  Now that I have defined my idea of Forex position trading let's get to my quick update on the EUR/SEK. Given the fact that I have posted articles on this pair as well as videos (see below for the forex position video) I want to follow up as we near our Riksbank Meeting tomorrow. I want to go over some things I will be looking at for Swedens Central Bank decision tomorrow.

This month so far (2-5-2013) we have seen Swedish PMI services out advance to 52.4 in January from 49.1 in December. Analysts noted this rise was lead by sales that rose to 55.7 from 49.0 and order which rose to 53.9 from earlier 48.9. This strong data by some was  much better than expected  and some feel this  reduces further the chances for additional cuts by the Riksbank. Keep in mind a  February cut is by now almost fully priced out of the equation, and some say an April cut looks increasingly unlikely. The data that came out on 2/5/2013 has changed the minds of some fundamental traders , however I made a nice profit on my first entry with almost (1,000 pips) I decided to wait and entered at a lower level on this pair. At the moment I remain long, however i have NO plans to add unless a short squeeze begins or my original position goes green.

Riksbank, will decide tomorrow whether to take the lending benchmark to 0.75% from the current 1.0%. Since last meeting in mid December, we have seen range trading on the daily chart as one way to play this pair.

At the moment our Team of the  view that the most likely  Riksbank to hold at 1% but may apply some rhetoric for dovish bias with the door left open for further easing in April. I am personally short this pair and will continue to hold regardless of rate cut or hold. I have a pending hedge short at 8.50 that will execute if we break support and help me to protect my trade and make some pips on the way down if we flush.

EUR/SEK Forex Position Trading Technicals:

8.50 is support  for EUR/SEK, below this the next major support is  8.4170. I mentioned I do not follow the technical as much with Position trading however the important levels will always be on my charts.

Here is a quick screen shot of a EUR/SEK chart with no moving averages to show the clear support and resistance levels.

Here is the Position Trading Video from early Jan: