News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/z9XcfuxLOx
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh88nOv https://t.co/hQgZB9T73q
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10CKUR https://t.co/9JVh6BsWa2
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/ZDuee58Abe
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/niJL2W2yXV
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
3 New Breakout Factors Impacting USD/SEK

3 New Breakout Factors Impacting USD/SEK

Rafiul Hossain, Head Forex Trading Instructor

Talking Points:

  • Break and Retest of Longer-Term Downtrend
  • A "Game-Changing" Fundamental Factor
  • Possible Long Set-up in USD/SEK

Rising household income is currently acting as the main source of growth for the Swedish economy, which is, for the time being, doing quite well. However, the nation’s export industry is lagging and employment is still rising, and along with low inflation and a dovish central bank (Riksbank), we have seen recent pressure on the Swedish krone (SEK) and prevailing weakness against the US dollar (USD).

As mentioned in previous analysis, USDSEK did recently rebound from a key support zone (6.30-6.35) to reach two upside price targets of 6.48 and 6.57, respectively. Prior to that, however, the pair declined from a longer-term resistance area around 6.60 and retested an earlier breakout point from summer 2013.

See also: Possible Range-Bound Rally in USD/SEK

Now, having broken out of the downtrend in place since summer 2013, USDSEK has retested this trend line from above, showing a (bullish) reversal formation from the support area. This suggests an increased likelihood for a real breakout and the resumption of a new uptrend featuring higher highs and higher lows.

Guest Commentary: Technical Outlook for USD/SEK

Having broken out of a longer-term downtrend, USD/SEK is now showing a bullish reversal formation at an important trend line support area.

Support: 6.50-6.45, 6.40, and 6.30

Resistance: 6.57-6.60, 6.70, and 6.85-6.95

However, in order to clear the way for further upside in USDSEK, the pair will need to break and hold above the key resistance area near 6.60. If so, price could trade as high as 6.70 in Q2 and ultimately reach last year’s high of 6.85.

Meanwhile, on the downside, established support lies between 6.45 and 6.50. A break (and daily close) below 6.45 would jeopardize the current bullish set-up in place for USDSEK (see below).

It is important to point out that underlying macro factors from Sweden also support a weaker krone and higher USDSEK. Inflation remains very low, actually below Riksbank estimates for the coming months, which is pushing front-end rates to new all-time lows. This supports a possible rate hike as soon as July and further warrants new long positions in USDSEK.

Long Trade Idea for USD/SEK

Using half the desired position, go long USDSEK at current price levels (between 6.55 and 6.50). Add to the initial position if price comes down to test the next support area just above 6.45. The stop loss should be executed if USDSEK closes below 6.42 on the daily time frame.

The price targets for this current trade would be 6.68 and then 6.82. If the first target is reached, the stop loss should be moved to the entry price in order to manage risk more effectively.

By Rafiul Hossain, Guest Contributor, DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES