Will the downtrend in USD/SEK continue?

USD/SEK traded higher during the European morning Tuesday after it hit support at 8.3595. Overall though, the rate has been printing lower highs and lower lows below the downside resistance line drawn from the high of April 5th, and thus, although the current recovery may continue for a while more, we would see it as a corrective move before the next leg south.

If the bears are strong enough to take charge again from below the aforementioned downside line, we would expect them to push the action below the 8.3595 zones, thereby confirming a forthcoming lower low and the continuation of the prevailing uptrend. We may then experience extensions towards the 8.2600 area, the break of which may allow a push towards the low of February 25th, at 8.2055.

Shifting attention to our short-term oscillators, we see that the RSI rebounded from near its 30 lines, while the MACD, although below both its zero and trigger lines, shows signs of bottoming as well. It could move above its trigger line soon. Both indicators detect slowing downside speed which supports the notion for some further recovery before the next leg south.

Nonetheless, in order to abandon the bearish case and start examining a bullish reversal, we would like to see a strong rebound above 8.4760. The rate would already be above the pre-mentioned downside line and the bulls may initially target the 8.5275 obstacles, defined as resistance by the inside swing lows of April 8th and 9th. Another break, above 8.5275, may encourage the bulls to drive the battle towards the peak of April 13th, at 8.5965.



JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

75.05% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD extends gains amid dollar weakness

EUR/USD has bounced above 1.2150 as the US dollar resumes its decline in the aftermath of Friday's weak job figures. Uncertainty about the ECB's policy somewhat weighs on the currency while the upbeat Sentix Investor Confidence supports it.


GBP/USD soars to 1.41 after UK elections, US Nonfarm Payrolls

GBP/USD has hit a new three-month high just above 1.41 after the SNP failed to win a majority in Scotland and as the UK is set to extend its reopening. The dollar is still suffering from Friday's weak jobs report.


XAU/USD eyes critical resistance at $1,850

XAU/USD is rising for the fourth straight day on Monday. Next hurdle for gold is located around $1,850. A technical correction could be witnessed before the next leg up.

Gold News

ETH soars above $4,000, as BTC and XRP struggle

Bitcoin price beginning to hint at a complex topping process. Ethereum price shakes off rising wedge pattern to test new Fibonacci extension level.

More Dogecoin News

S&P 500 Nasdaq Day Ahead: No jobs, no bears, no way

Friday's jobs report still looms large over markets this morning with the dollar suffering a pasting at the hands of a resurgent sterling. Yields continue to shrug it off and slumber while the VIX does give a little wobble.

Read more