The USD/SEK has sunk to July lows, but the currency pair remains in the upper realms of its long term price range technically.
Speculators have intriguing technical considerations awaiting their pursuit of the USD/SEK this morning. As of this writing the Swedish Krona is traversing near July lows via its currency pair with the USD. However, the USD/SEK currency pair clearly remains within the upper realms of its long term range.
On the 12th of July the USD/SEK was trading near the 10.68000 ratio and as of this morning the currency pair is around 10.23000 within fast conditions. But on the 9th of November 2021, the USD/SEK was trading near 8.55900. The steady loss of value in the Swedish Krona mirrors a lot of the price action from it major counterpart in forex, the EUR/USD which is near parity now. At the core of fundamental and technical considerations the USD/SEK is trading within a price range it has not seriously occupied since 2001 and 2002.
USD/SEK continues to remain in its Higher Range but has Experienced Recent Selling
The selloff in the USD/SEK the past week also mirrors price action via the EUR/USD. This doesn’t mean the forex pairs work in lock step, but illustrates the behavioral sentiment surrounding the USD/SEK and the way financial institutions are reacting to the upper tier of the price ranges being tested. While the current lows touched this morning near the 10.19000 were significant for short term traders, this might also highlight rather intriguing support for buying opportunities.
USD/SEK should be monitored compared to EUR/USD for results via Trends
The long term bullish trend of the USD/SEK may appear to have reached an apex emotionally for many traders, but this doesn’t make their perceptions correct. There are likely to be additional tests of highs for the USD/SEK currency pair. Next week the U.S Federal Reserve is expected to raise interest rates by another 0.75%. Perhaps this has been digested into the USD/SEK already, but plenty of volatility will be demonstrated in the near term.
- Upper range of USD/SEK is almost certain to produce additional volatile results, as U.S Fed interest rate hike is anticipated.
- This morning’s lows in the USD/SEK may prove to be an intriguing support level for speculators.
Speculators who are keen to test the high water marks of the USD/SEK, and be sellers should remain conservative regarding their price targets. Yes, downside reversals like the one demonstrated again this morning and the past week are interesting, but this may not be the end of the bullish cycle for the USD/SEK. Traders who technically believe they can spot durable support and ignite buying positions for quick hitting movements upwards cannot be blamed. Risk management is essential within these upper heights for the USD/SEK and proper use of leverage is definitely needed.
Swedish Krona Short-Term Outlook
Current Resistance: 10.25600
Current Support: 10.18520
High Target: 10.32100
Low Target: 10.14170
Ready to trade our Forex daily analysis and predictions? Here are the best Forex brokers to choose from.