Forex Market: USD/SEK daily forecast

During yesterday’s trading session USD/SEK traded within the range of 6.5853-6.6263 and closed at 6.6116.

At 6:33 GMT today USD/SEK was losing 0.09% for the day to trade at 6.6071. The pair touched a daily low at 6.6053 at 6:05 GMT.

Fundamental view

United States

At 14:00 GMT the National Association of Realtors (NAR) will report on existing home sales in the United States during March. In February compared to January the index of existing home sales dropped 0.4% to a level of 4.6 million. The sample of data encompasses condos, co-ops and single-family houses.

Statistical data on existing home sales is often used along with statistical figures regarding the New home sales and Pending home sales, with the major objective being to draw a conclusion how nation’s housing sector is performing, regardless of interest rates. The most active house-purchasing period in the United States is usually between the months of March through June. Therefore, in case statistical data revealed a sudden drop in the number of homes sold rather than an improvement during this period, this would be considered as a signal of weakness in country’s housing market.

The report on existing home sales usually does not cause a real direct impact on US economy. Actually, this effect appears to be minimal, due to the fact that nothing is produced with the mere sale of an existing home. In terms of economic activity, the sale of an existing house may be related only to interior design and purchases of new furniture.

In case the index increased more than anticipated, this would support the greenback.

Sweden

The unemployment rate in Sweden probably remained unchanged at 8.5% in March, the same rate as in the previous month, according to the median estimate by experts. From March 2005, the indicator covers all people of working age, who during the reference period were not employed, but have a desire to work and were actively seeking work during the last four weeks. People waiting to start work in the next three months are also included. Data from 1976 included also students eligible for unemployment by standards of the International Labour Organisation – ILO. The organization re-entered the survey in October 2007 and the unemployment rate is now calculated as the percentage of unemployed people to the total level of labor force in the country. Workforce represents the total of employed and unemployed persons.

Statistics Sweden is scheduled to release an official report at 07:30 GMT. A lower than expected unemployment rate will heighten the appeal of the Swedish krona.

Technical view

According to Binary Tribune’s daily analysis, in case USD/SEK manages to breach the first resistance level at 6.6302, it will probably continue up to test 6.6487. In case the second key resistance is broken, the pair will probably attempt to advance to 6.6712.

If USD/SEK manages to breach the first key support at 6.5893, it will probably continue to slide and test 6.5667. With this second key support broken, the movement to the downside will probably continue to 6.5482.