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USD/SEK poised to test 9.3295 – Danske

FXStreet (Barcelona) - Thomas Harr, Global Head of FICC Research at Danske Bank, views that the strong trend momentum seen in USD/SEK favours a test of 9.3295 followed by 9.8275.

Key Quotes

“The powerful up-trend in USD/SEK looks set to extend, with bulls continuing to shrug off various indications of an overextended structure.”

“Short, medium and longer-term MAs (20, 50 and 100 week) remain positively aligned, and the recent pullback of the signal line to the MACD line provides a potential buying opportunity, in our view.”

“Clearance of the 18 March 8.8280 high opens the way for an attempt on the 2009 peak (5 March) at 9.3295. A break through here will target the 76.4% retracement of the 5 July 2001 – 23 April 2008 fall (11.0650 – 5.8210) at 9.8275.”

“It would take a downside break of the 26 March low at 8.4280 to dampen momentum and trigger a deeper correction to 8.2565/8.2330 (3 March low/15 January high) area, which will be the next support area.”

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