Forex Market: USD/SEK daily forecast

Yesterday’s trade saw USD/SEK within the range of 6.8547-6.8987. The pair closed at 6.8732, losing 0.33% on a daily basis.

At 6:27 GMT today USD/SEK was up 6.8756 0.05 for the day to trade at 6.8756. The pair touched a daily high at 6.8822 at 1:15 GMT.

Fundamental view

United States

The United States probably recorded a government budget deficit of 96.0 billion USD in July, according to market expectations, after a surplus of 70.519 billion USD during the previous month. The largest budget deficit on record was registered in February 2012, or 231.677 billion USD. A wider than projected deficit would have a bearish effect on the greenback. The Financial Management Service, US Treasury is to publish the official figure at 18:00 GMT.

Sweden

Sweden’s annualized index of consumer prices (CPI) probably slowed down to 0.1% in July from 0.2% in June. The annualized CPI marked an all-time low of -1.60% in September 2009. The index measures the change in price levels of a basket of goods and services from consumer’s perspective and also reflects purchasing trends. Nation’s annualized core CPI probably slid to 0.7% last month from 0.8% in June. Lower than expected CPI would have a bearish effect on the krone. Statistics Sweden is to release the official report at 7:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 6.8755. In case USD/SEK manages to breach the first resistance level at 6.8965, it will probably continue up to test 6.9195. In case the second key resistance is broken, the pair will probably attempt to advance to 6.9404.

If USD/SEK manages to breach the first key support at 6.8525, it will probably continue to slide and test 6.8315. With this second key support broken, the movement to the downside will probably continue to 6.8084.

The mid-Pivot levels for today are as follows: M1 – 6.8200, M2 – 6.8420, M3 – 6.8640, M4 – 6.8860, M5 – 6.9080, M6 – 6.9300.

In weekly terms, the central pivot point is at 6.8925. The three key resistance levels are as follows: R1 – 6.9313, R2 – 6.9713, R3 – 7.0101. The three key support levels are: S1 – 6.8525, S2 – 6.8137, S3 – 6.7737.