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Short-term Trading Idea FX USD/SEK – Bear Speculation: Correctional Movement to Fibonacci Level 38.2%

Trading opportunities on currency pair: the dollar rate has downed the May 8.1851 minimum. As part of a correction, there’s the possibility of a recoil to the 38.2% fibo level – 7.9051 (growth from 6.3231 to 8.8830). From 7.9051 it’s likely a new dollar rally will start.

Today I decided to do an idea on the USD/SEK. Take a look at the weekly graph. The dollar rate has downed the May 8.1851 minimum. If the US dollar throughout Monday and Tuesday cannot win back its Thursday and Friday losses, prepare for a strengthening of the correction to the 38.2% fibo level – 7.9051 (growth from 6.3231 to 8.8830). From 7.9051 it’s likely a new dollar rally will start.

For the second week in a row the dollar has closed down against the euro and the Swedish krona. Due to negative news from Greece, and a correction on the American dollar, the market participants have been buying Swedish krona for euros and dollars.

The Swedish central bank doesn’t need a strong krona since it interferes with economic growth via a drop in inflation and exports. Due to this, keep an eye on how the price behaves by the 8.1670 support.

If the USD/SEK slips sharply from 8.1489, then a double bottom and W formed pattern with a 8.8830 target will catch people’s attention. Some might see this as a butterfly pattern. Again, monitor the general movements on the dollar across the market and those of the EUR/SEK.

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Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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