USD/SEK Down 286 Pips; in a Downtrend Over Past 90 Days

USD/SEK Price Recap

A moment of silence, please, for the end of USD/SEK’s 3 day up streak; price ended yesterday down 286 pips (-0.3%) to finish the day at a rate of rate of 9.4635. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 21.33% from the day before — and down 22.3% from the same day the week before. Relative to other instruments in the Forex asset class, USD/SEK ranked 34th yesterday in terms of percentage price change. The price chart of USD/SEK below illustrates.

USD/SEK Technical Analysis

The first thing we should note is that the current price of USD/SEK is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 50 day average, which is 510.1 pips away. In addition to the moving average crossover, USD/SEK’s momentum/trend on a 30 day basis may be decelerating. Volatility for USD/SEK has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. It should be noted, though, that a trend in the opposite direction, going down, exists on the 90 day timeframe. For additional context, note that price has gone up 9 out of the past 14 days.

The View From Around the Web

Not much in terms quality buy/sell signals we’re seeing for USDSEK; just 1 sell signals and 0 buy signals. This imputes a buy/sell ratio of 0, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

approaching daily resistancewait break down rising wedge patternand retest => SELL