The Swedish Krona is likely sparking bearish perceptions within plenty of speculators again as an important price range tests support levels.
The Swedish Krona has enjoyed a long term bearish trend versus the USD, but it has not been without a fight. The past month of trading has produced choppy trading conditions, which may even be described as a whipsaw by speculators who have found the frequency of reversals dangerous and costly. In early trading this morning the USD/SEK is within an important testing ground as support levels from late January are being challenged.
The junctures of 8.280000 to 8.260000 are important and if support is proven vulnerable within this price vicinity it could spur on additional speculative bearish perspectives. The next viable targets below for short term traders if the current support levels are penetrated are the 8.25000 to 8.23000 marks. Typically such nearby support would not be mentioned, but the values could prove important because if the 8.23000 level fails to hold, then early January values may come into play quickly.
The Swedish Krona has maintained a significant bearish trend since March of 2020. While the past month has proven difficult for speculators who have persisted in pursuing the bearish trend, current support levels should be monitored. If the current price range of the USD/SEK is punctured lower, it may begin excite traders who have taken a conservative stance with the forex pair the past few weeks due to its turbulent trading environment.
Because of the recent tendency for reversals within the USD/SEK, some speculators may view the current price range and suspect buying will be demonstrated and resistance will be targeted. This is not a poor trading decision, but wagers on bullish momentum be ignited short term should be protected by stop loss orders if the USD/SEK sees its downward pressure persist.
Global markets have shown an abundance of optimism short term and risk appetite may prove to be substantial near term. The USD/SEK has produced plenty of choppy trading the past few weeks with swift reversals upward, but the forex pair has shown an ability to also remain within its bearish territory. If the USD/SEK shows an ability to sustain it current values and trade below the 8.32000 to 8.34000 resistance junctures, speculators may suspect more downside momentum will develop and a retest of January lows will be exhibited.
Swedish Krona Short Term Outlook:
- Current Resistance: 8.34000
- Current Support: 8.25000
- High Target: 8.38000
- Low Target: 8.22000