Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

USD/SEK Breaks The Lower End Of A Range

Published 12/04/2018, 07:12 AM
Updated 07/09/2023, 06:31 AM

USD/SEK tumbled on Tuesday, breaking below the 8.9870 barrier, which acted as the lower end of the sideways range that had been containing most of the price action since the 1st of November. Then, the rate hit the 8.9500 support line, defined by the lows of the 18th and 22nd of October and subsequently, it rebounded somewhat. That said, as long as the pair is trading below the 8.9870 hurdle, we would consider the near-term picture to have turned negative.

If the bears are willing to stay in the driver’s seat and manage to push the rate below 8.9500, then we may see them aiming for our next support level, at around 8.9300. Another dip below 8.9300 may carry more bearish implications and could pave the way for the 8.8900 zone, fractionally above the lows of the 16th and 17th of October.

Our short-term momentum studies detect accelerating downside speed and support the case for this pair to continue drifting south for a while more. The RSI moved lower and now appears ready to move below its 30 line, while the MACD lies below both its zero and trigger lines, pointing down as well.

Even if the rate recovers a bit more, as long as the recovery stays limited below 8.9870, we would still consider the short-term outlook to be cautiously negative. We would like to see a decisive break back above 9.0000 before we start examining whether the sellers have abandoned the battlefield. Such a break could confirm the rate’s return within the aforementioned sideways range and could see scope for extensions towards 9.0550.
USD/SEK

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.