USDSEK closes higher for the 2nd day in a row
US Dollar/Swedish Krona (USDSEK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDSEK finished the week -2.02% lower at 9.6629 after gaining 470 pips (0.49%) today. Closing above Thursday's high at 9.6384, the currency confirmed its breakout through the previous session high after trading up to 650 pips above it intraday.
Daily Candlestick Chart (USDSEK as at May 22, 2020):
Friday's trading range has been 914 pips (0.95%), that's below the last trading month's daily average range of 1138 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USDSEK.
Prices are trading close to the key technical resistance level at 9.7086 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the close-by swing low at 9.5582 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/SEK. Out of 596 times, USDSEK closed lower 51.34% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more