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Dollar Soars as Swedish Krona Suffers

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Last week's better than expected US unemployment claims results continued to strengthen the dollar versus the Swedish krona ( SEK ). The steady uptrend for the USD/SEK appears to be gaining momentum as the pair continues to head higher.

It appears that more positive economic data in the US could lead to further advancement for the USD; therefore, we may recommend a long position in USD/SEK in the near term. After rising to 7.35, the cross will be testing the 7.481 and 7.530 levels.

The chart below is the USD/SEK daily chart provided by ForexYard. The indicators used on the chart below are the Relative Strength Index ( RSI ), Moving Average Convergence/Divergence ( MACD ), and the Bollinger Bands.

- Point 1: Looking at the RSI, we can see that the price currently floats in the over-sold territory, highlighting upward pressure.

- Point 2: A buy signal that is forming on the MACD oscillator also hints at a price move higher. A bullish cross is forming, indicating the potential for upward movement in this pair.

- Point 3: The pair is currently trading along the lower band, indicating that an upward correction is due to take place. Furthermore, the Bollinger Bands are beginning to widen, spreading farther apart. This typically means that a price shift is likely to take place.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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