FxNews – In our latest USDSEK analysis, we’ve observed that the USDSEK is gaining value and trading within a bullish channel.
The cornerstone of any forex analysis is identifying the trend of the asset you’re planning to trade. By examining the weekly or daily chart, we can gain a broad understanding of the current market condition. Is it in a bullish phase, or is it bearish? Stay tuned for our comprehensive forex trend analysis.
USDSEK Daily Chart
The pair recently broke above the 10.84 resistance level, a significant milestone in its upward trajectory. This break was tested when the Stochastic oscillator signaled that the USDSEK might be overbought. However, with the RSI indicator remaining above the 50 level and far from the overbought area, it suggests a decent bid for buyers at the 10.84 support level.
USDSEK 4H Chart
To further confirm this scenario, we’ve zoomed into the USDSEK 4H chart. Despite attempts by the bulls to break out of the bearish channel, the USDSEK price has returned inside the channel. In this USDSEK analysis, we recommend traders to exercise patience at this level. Although the currency pair’s main trend is bullish in the weekly chart, it’s currently in a declining channel in the 4H chart.
USDSEK Forecast: Technical Analysis
If the bears manage to close below the blue bullish channel, we anticipate that the USDSEK price will decline to the middle line of the 4H bearish channel (shown in black), followed by reaching the 10.77 support level. On the other hand, if the bulls on the USDSEK manage to break out of the blue bullish channel in the 4H chart, we predict that the price of the pair would surge towards a target of 11.123.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.