FxWirePro: USD/SEK near 2-month peak as Sweden's GDP eases, good to buy on dips
The Swedish Krona plunged to a near 2- month low following the release of worse-than-expected growth data. Sweden's gross domestic product rose at an annualized rate of 1.4 percent in the second quarter, lower than 1.9 p…
The Swedish Krona plunged to a near 2- month low following the release of worse-than-expected growth data.
Sweden's gross domestic product rose at an annualized rate of 1.4 percent in the second quarter, lower than 1.9 percent expected and previous reading of 2.1 percent.
On a quarterly basis, the economy's growth contracted -0.1 percent in Q2, after surging 0.6 percent in Q1 and below estimates of 0.2 percent expansion.
USD/SEK trades 0.7 percent up at 9.5500, having hit a high of 9.5527 earlier, its highest since May 31.
The pair broke trendline resistance at 9.5202 (trendline joining 9.4996 and 9.4804) and is trading above the level.
Technical indicators support upside - RSI strong at 62.66, Stochs are biased higher, MACD supports uptrend.
Immediate resistance is located at 9.5647 / 9.5901, break above could take it near 9.6147 (May 29 High).
On the lower side, support is seen at 9.4599 (5-DMA), break below could take it till 9.4449 (7-EMA)
Recommendation: Good to buy on dips around 9.4700, with stop loss of 9.4450, target price at 9.5901.
