USD/SEK declines as dollar weakens generally
The dollar fell slightly against 9 of its G10 counterparts ahead of tomorrow’s FOMC meeting with the SEK experiencing the biggest gains despite the absence of market-affecting news for the currency.
The EUR/USD continued to gain through the European morning after the ZEW survey showed strong improvement in Germany and euro area, with the figure exceeding forecasts for both. Sterling on the other hand was the only loser in the G10 against the dollar, as after a softer-than-estimated CPI for August made it lose the day’s earlier gains.
USD/SEK has been trading in a short term downtrend since 5th of September. In the early afternoon the pair was testing the strong support level of 6.4697 (S1). The last time we saw a daily close below that barrier was on July 23th. It would be a cause for concern if the pair fails to break that level again. On the other hand, a dip below there should confirm the continuation of the downtrend and drive the battle towards the next support at 6.4393 (S2). ADX value is above 20 with –DI lying above +Di, while along the MACD’s negative reading they confirm the rate’s bearish momentum.
Support is found at 6.4697 (S1), followed by 6.4393 (S2) and 6.3777 (S3). The latter two are identified from the daily chart.
Resistance is at the level of 6.5019 (R1), followed by 6.5221 (R2) and 9.5451 (R3)
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