As we can see from the chart below (provided by ForexYard), the USD/SEK has been trading within a major downtrend for some time now. The current reading has pushed below the Sept. 2009 price, making this a 2-year low price mark.
Moreover, as we can see from the Relative Strength Index (RSI) the price remains in neutral territory and does not show any accumulation of technical pressure to the upside.
The Stochastic (slow) on our weekly chart, however, does reveal what appears to be an impending bullish cross. There appears to be several days or weeks before this cross occurs, on the other hand, which means the bearish momentum remains dominant for the time being.
Technical analysts have said they expect some level of retracement in the USD/SEK towards 6.5000 by mid-February, likely assisted by a boost to the USD from Valentine’s Day retail sales growth. The peaking SEK values are also expected to start cutting into corporate profits in Sweden over the next several months and at least a few forecasts are beginning to reflect this expected shrinkage.
For the moment, however, traders may expect a continuation of bearishness in the USD/SEK as the pair seems to retain solid downward momentum heading into the first week of February.
USD/SEK – Weekly Chart
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
