FxWirePro: USD/SEK off 2-week lows, finds support at 55-EMA
The Swedish Krona rose to a 2-week peak following the release of upbeat inflation data. Sweden's consumer price index increased 0.4 percent in July, after declining 0.1 percent in the previous month. However, on an annua…
The Swedish Krona rose to a 2-week peak following the release of upbeat inflation data.
Sweden's consumer price index increased 0.4 percent in July, after declining 0.1 percent in the previous month.
However, on an annualised basis, inflation rate edged down to 1.7 percent in July from 1.8 percent in June but above market expectations of 1.5 percent.
USD/SEK trades 0.3 percent up at 9.5614, having hit a low of 9.4847 earlier, its lowest since July 30.
The pair breached 21-EMA (major support) but trimmed losses to trade above 9.5200
55-EMA is now acting as major support.
Momentum studies show bullish trend, with RSI higher at 55.95 levels and Stochs indicating a bullish crossover.
Immediate resistance is located at 9.6005 (trendline joining 9.7000 and 9.6427), close above could take it near 9.6512 /9.7000 (August 1 High).
On the lower side, support is seen at 9.4701 (55-EMA), break below could see a reversal in trend.
Recommendation: Good to buy on dips around 9.5200, with stop loss of 9.5071 and target price at 9.6005.
