Forex Market: USD/SEK daily forecast

During yesterday’s trading session USD/SEK traded within the range of 6.5651-6.5976 and closed at 6.5918.

At 6:24 GMT today USD/SEK was gaining 0.22% for the day to trade at 6.6011. The pair touched a daily high at 6.6076 at 5:35 GMT, breaching the first key resistance.

Fundamental view

United States

At 14:00 GMT United States’ Census Bureau is to announce the results from the Survey of Construction, regarding sales of new, privately-owned residential buildings currently authorized by a building permit or started in areas not requiring a building permit in February. New home sales in the country probably increased to an annualized pace of 0.425 million units last month from 0.384 million units in March, which was the weakest level since December 2012.

A higher-than-expected reading would certainly heighten greenback’s appeal.

Sweden

Consumer confidence in Sweden probably improved to 99.4 in May from 99.0 in the previous month.

The index is based on a monthly survey of households in Sweden. Its purpose is to make a quick qualitative assessment of the plans of households connected to the purchase of new products by exploring the economic situation in Sweden and the state of personal finances. People are also share their expectations about inflation and savings. Data from the survey include the so-called net rates or data showing the difference between positive and negative minded households.

At 7:00 GMT, Statistics Sweden is expected to release data on the nation’s consumer confidence index for April. In case consumer confidence improves more than expected, this would heighten the appeal of the Swedish krona.

Technical analysis

According to Binary Tribune’s daily analysis, in case USD/SEK manages to breach the first resistance level at 6.6046, it will probably continue up to test 6.6171. In case the second key resistance is broken, the pair will probably attempt to advance to 6.6371.

If USD/SEK manages to breach the first key support at 6.5719, it will probably continue to slide and test 6.5523. With this second key support broken, the movement to the downside will probably continue to 6.5396.