Readers are urged to watch the USD/SEK, to glimpse the quick changes of value which are being demonstrated to grasp the escalated nervousness within the currency pair before trading.
The USD/SEK climbed to record highs in early trading this morning, as financial institutions continue to react to yesterday’s U.S Federal Reserve interest rate outlook.
Traders who are thinking about selling the USD/SEK based on the belief a sudden reversal must occur now that apex highs have been displayed this morning should use stop losses. This is written as an early warning in this article that the USD/SEK has made historic highs, as its bullish trend continues to take no prisoners. Yes, reversals lower certainly occur, but to take advantage of them a full array of risk taking tactics must be used with precision.
The USD/SEK remains dangerous and volatile and its climb upwards since the U.S Federal Reserve’s interest rate hike yesterday and rhetoric essentially outlining more hikes, has shaken Forex. As of this morning the USD/SEK is near the 11.03000 mark with quick price action. Readers are urged to watch the USD/SEK, to glimpse the quick changes of value which are being demonstrated to grasp the escalated nervousness within the currency pair before trading.
USD/SEK is mirroring other Major Currency Pairs as the USD Gains Strength
The momentum in the USD/SEK has been bullish and support levels which are technically visible actually didn’t exist until a handful of hours ago. Short term conditions will remain volatile in the near term as financial houses come to terms with the notion that additional interest rate hikes are likely from the U.S, and the USD/SEK will remain under the shadow of a strong USD longer than many anticipated. Resistance levels seemed to become weaker yesterday after the 10.88000 level was penetrated higher and sustained.
The USD/SEK has certainly displayed the ability to trade lower and on the 13th of September a value of 10.41650 was seen. However, the trend remains steady and a look at long term charts shows the USD/SEK continuing to incrementally climb. The question may be, how high can the USD/SEK go before it is overbought, yet like many other major currencies which are at long term lows against the USD it may be unwise to step in front of the existing trend.
Record High Territory and Hypothetical Resistance in the USD/SEK
- Resistance levels at this point are short term, because the USD/SEK is trading in unexplored territory as it touches new highs.
- Traders need to have total risk management in place while pursuing the USD/SEK and entry price orders are recommended to get fills that meet expectations.
Fast trading and quick prices will dominate trading in the short term. The values of the USD/SEK likely under pressure from trading software at financial houses working in overdrive, and results within the currency pair will be lively. Extreme caution is needed and risk taking tactics need to be used wisely. Buying the USD/SEK on slight reversals lower that touch perceived short term support may be the best wager today.
Swedish Krona Short Term Outlook:
Current Resistance: 11.06000
Current Support: 11.00500
High Target: 11.15275
Low Target: 10.98000