USD/SEK is an uptrend that formed on the first trading day of 2024, and for four and a half months now, the upward movement continues. The strengthening of the dollar became possible after lower expectations of changes in the Fed interest rate. The American regulator continues to regularly cool the market regarding the reduction of the interest rate. We are not talking about growth at all, but this becomes enough in the confrontation with other currencies, which are also not supported by tightening monetary policy.
Over the past 7 days, the dollar has received support not only from Fed signals, but also due to geopolitical factors associated with the growing likelihood of war in the Middle East. In this case, USD was considered by investors as a safe asset. However, despite the decrease in the degree of escalation, the dollar does not retreat in the confrontation with the Swedish krona, in the absence of supporting factors for the latter.
Most technical analysis indicators show the effectiveness of purchases despite being overbought according to most oscillators. If you look at the chart, you can see that the growth potential remains high. Just last year, the Swedish krona was trading at higher levels above $11. At the same time, it should be noted that USD/SEK quotes did not fall out of the range of $10.00-11.40. In the current situation, we recommend buying USD in the short term, and after reaching the level of 11.20-11.40, it's worth thinking about Selling.
