The US dollar has been rallying against the Swedish krona for ages. The last few weeks of course haven’t been any different, and as we kicked off the month of May, we had found ourselves in unchartered territory. Quite frankly, after exploding to a fresh, new high it makes sense that this pair should be one that you are paying attention to.
A lot of traders are a bit cautious about trading the pair, but it is part of the US Dollar Index. As such, it is technically a major pair although it only makes up about 3% of that index. Nonetheless, we have broken above the 9.45 region, and even above the 9.5 region. Pullbacks are more than likely going to continue to be looked at with suspicion, and perhaps with the idea of offering value.
The massive candle stick towards the end of the month of April of course is a good sign, and it suggests that there is a bit of a floor in this pair down at the 9.25 level. If we were to break down below there I would be a bit surprised but the next obvious support level would be the 9.00 large figure. I believe that pullbacks will continue to act as value the people are willing to take advantage of as the Swedish central bank has suggested its rate hiking cycle was going on hold.
At this point in time, I suspect that sometime during the month we will see a serious attempt to reach towards the 10 krona level. Because of this, I believe that we will see large moves coming rather soon as at least one of the central banks in this equation is light years away from tightening.
