Swedish krona continues to suffer

FX:USDSEK   U.S. Dollar / Swedish Krona
The US dollar has risen again against the Swedish krona , testing the 9.9 level during the day. We are well above the 50 day EMA , and now threatening to make a fresh, new high again. Ultimately, this means that the market will probably go looking towards the 10 SEK level, an area that will of course attract a lot of attention as it is such a large, round, psychologically significant figure. That being said, the fact that the Monday candle is closing so strong suggests that we are going to get that follow-through.

With the US dollar strengthening the way it is, that could be a very “risk off” signal, showing signs of the market becoming concerned about riskier currency such as the Krona. The 9.80 SEK level underneath should be support, and at this point the uptrend is showing no signs of letting up. That being said, the 10 SEK level is an area where I would expect a huge pushback, as it is a large, round, psychologically significant figure and of course an area that the market has seen.

If we were to turn on a break down below the 9.80 SEK level, then the market probably goes looking towards the 50 day EMA underneath, closer to the 9.70 level. That being the case, it’s most likely a market that you are waiting to buy instead of trying to sell into that move. After all, the trend would still be very bullish , so trying to fight it would make any sense. It is not until the daily candle stick closes below the 9.6 SEK level that the trend would be threatened. Until then, it’s simply a matter of buying dips as they come along but based upon the Monday candle stick, we may not even get a chance.
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