Technical Data Indicates USD May Advance on SEK
March 16th, 2010 Posted in Technical Analysis
USD has continued to trade between the prices levels of 7.0400-7.1400 against the SEK during the last two days. Currently, the pair seems to be fluctuating between these trading levels, within a broader downwards channel, as can be seen on the chart.
These fluctuations however may intensify in anticipation of the next big event to hit the news. Various market events can contribute to heavy volatility. For example, we can take Bernanke’s speech, scheduled for tomorrow at 18:00 GMT. Bernanke’s speech may indeed provide ample opportunities for short-term forex traders.
Returning back to the technical, we may quite firmly assume that as long as the 6.9000 support level stays untouched, there is a good chance that the pair may enter into some more bullish corrections and move higher in the coming days. Further forex technical analysis of the USD/SEK shows that support is building on the lower resistance line at the price level of 7.0300. The MACD lower trend line, angling towards bullish cross, signals an upward movement may take place in the near future. The 14-day Relative Strength Indicator also supports this notion. The RSI signals that the pair sits near the bottom border, suggesting an upward correction may be imminent.
That’s being said, this has been a short term analysis. In the long-run, traders must keep in mind that as long as risk aversion continues to give the Dollar strength, USD/SEK will likely continue its gradual depreciation.
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Tags: dollar, Forex, forex blog, MACD, RSI, SEK, Technical Analysis, USD
