After touching resistance near the 9.15000 level on the 25th of September as risk-averse trading reached an apex, the USD/SEK has resumed its bearish trend and is making quick work of support levels in its way. As of this morning, the Swedish Krona is near the 8.88880 vicinity and its price range has exhibited additional technical downward signals for apparently motivated bearish momentum. Speculators who enjoy a glance at one-month charts may find it interesting that the USD/SEK is approaching the September values it enjoyed before suffering a spike upwards when risk appetite evaporated for a short duration.
From late July until the end of the third week in September the USD/SEK had a range largely between 8.64000 and 8.87000. The fact that I mention the 8.87000 number is not a coincidence, if this support level can be penetrated lower and trading is sustained it may be an additional signal further bearish activity will be demonstrated within the USD/SEK.
Global risk appetite has shown the ability to re-establish itself in the past week, this doesn’t mean that sentiment isn’t fragile, but it does mean there is a legitimate chance in the short term investors may continue to demonstrate the desire to be optimistic and proactive. If market conditions lean towards friendly risk appetite behavior it may prove worthwhile to continue to pursue bearish momentum within the USD/SEK.
Traders enjoy a certain degree of comfort within the USD/SEK. The forex pair enjoys solid trading volume and is not susceptible to large spikes. Its trading can appear fast because of the magnified values due to its often tight range, but the USD/SEK does trend with solid characteristics. Stop losses are important as always, but the USD/SEK also provides speculators an opportunity to choose technically sufficient limit orders to provide risk management.
Selling the USD/SEK on higher retracements could prove attractive for cautious speculators. The current price vicinity of 8.88000 to 8.91.00000 is near important support levels and if the 8.87000 level proves vulnerable, momentum downwards could accelerate quickly and trigger a test of target below around the 8.80000 levels rather well. The Swedish Krona appears to be in a solid spot technically regarding its ability to challenge support levels more, particularly if global risk appetite is demonstrated on equity indices near term.
Swedish Krona Short Term Outlook:
Current Resistance: 8.94600
Current Support: 8.84900
High Target: 8.99900
Low Target: 8.73000
