FxNews—In September 2024, Sweden’s unemployment rate rose to 8.2%, up from 7.7% in the same month last year. This is the highest level observed since June. The total number of jobless individuals surged by 31,000, reaching 468,000. Simultaneously, the number of people employed declined by 34,000, bringing the total to 5.220 million.
Unemployment in Sweden Rises to 8.5%
The percentage of employed individuals from the total population decreased by 0.6 points to 68.6%. Additionally, the labor force participation rate, which indicates the active portion of the workforce, slightly reduced by 0.1 points to 74.8%.
In September, the total hours worked weekly across Sweden averaged 173.7 million. After adjusting for seasonal variations, the unemployment rate slightly increased to 8.5% from 8.3% the previous month.
USDSEK Technical Analysis – 18-September-2024
The U.S. Dollar is in a strong uptrend against the Swedish Krona, trading at approximately 10.52 as of this writing. The robust uptrend is easing near the August 8 high at 10.55, a critical resistance level from where the price pulled back several times in the price history.
Additionally, the Stochastic Oscillator has hovered in the overbought territory since October 10, forecasting that the U.S. Dollar is extremely overpriced.
The Bollinger Bands indicator supports the Stochastic Oscillator. The price constantly hovers around the upper band or exceeds it, indicating that it is relatively high compared to recent history. This can sometimes be a sign of an overbought condition.
Zooming at the USD/SEK 4-hour chart, we notice that the price is above the 50- and 100-period simple moving averages, meaning that the primary trend is bullish.
Overall, the technical indicators suggest the primary trend is bullish, but the U.S. Dollar is overpriced. Therefore, a consolidation phase to the lower support level could be on the horizon.
USDSEK Forecast – 18-September-2024
According to the technical indicators, USD/SEK is overbought. Therefore, joining a bull market when it is saturated with buying pressure is not advisable. That said, we suggest traders and investors wait patiently for the Swedish Krona to erase some of its recent losses against the American currency.
In this scenario, the USD/SEK price will likely fall to the September 11 high at 10.41, a support level backed by the 50-period simple moving average. The 10.41 supply area can provide a decent bid to join the bull market.
Hence, traders and investors should monitor this level closely for bullish signals, such as bullish, engulfing candlestick, or hammer candlestick patterns. Kindly note that the bullish outlook should be invalidated if the USD/SEK falls below the 10.41 support.
USDSEK Support and Resistance Levels – 18-October-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 10.41 / 10.34 / 10.25
- Resistance: 10.55 / 10.65