Trading opportunities on currency pair: the USD/SEK has broken from the 8.8359-8.8830 zone. A double peak is forming. A further fall in the dollar and the idea coming off will see a first target set at 8.0571 and a second at 7.7231. A growth of the USD/SEK above 8.5960 will see a cancelling out of the scenario.
The USD has started to lose positions after the publication of the FOMC minutes. After they came out, many market participants expect the US central bank to decide to leave interest rates unchanged in September. I’ve made a trend line on the weekly graph. A break in this line will see us receiving a confirmation of a double peak. A second confirmation of this will come from a fall in the dollar below 8.0310. The dollar has fallen sharply against the euro, franc and yen. Commodities currencies have seen a slight fall due to the price of oil dropping.
The next FOMC meeting will take place on 16-17th September. Traders will keep track of data coming out of the US. Positive stats will offer support to the dollar and negative ones will pile on the pressure.
Since 8.0310 is supporting the fibo level and the channel, we’re looking at 8.0571 as a first target and 7.7231 as a second. If the price lifts above 8.5960 (last weekly candle’s maximum) from current level, better forget about this idea. The price will quickly return to 8.8359.