USD/SEK surged during the European morning Wednesday, breaking above Tuesday’s peak at 9.1400, that way confirming a forthcoming higher high on the 4-hour chart. The pair has been trending north, above an upside support line, since January 11th and thus, we will consider the short-term outlook to be positive for now.
At the time of writing, the rate is testing the 9.1620 barrier, marked by the high of December 12th. If the bulls are strong enough to overcome it, then we may see them aiming for our next resistance zone, at around 9.2000, which is fractionally below the peak of October 31st. Another move higher, above 9.2000 could carry more bullish implications, perhaps setting the stage for the 9.2470 area, defined by the high of August 15th.
Turning our gaze to the short-term momentum indicators, we see that the RSI just poked its nose above its 70 line and continues to point north, while the MACD lies above both its zero and trigger lines, pointing up as well. Both technical studies detect accelerating upside speed and corroborate our view for some further advances.
On the downside, we would like to see a dip below 9.0900, as well as below the aforementioned upside support line, before we start leaning to the bearish side. Such a break could initially pave the way for the 9.0600 support zone, the break of which may allow the bears to target the 9.0250 hurdle, which stopped the rate from moving lower on Friday.
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.
76% 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.
Copyright 2019 JFD Group Ltd.