USD/SEK advances on hawkish FOMC Minutes – Crypto News – Crypto News
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USD/SEK advances on hawkish FOMC Minutes USD/SEK advances on hawkish FOMC Minutes

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USD/SEK advances on hawkish FOMC Minutes – Crypto News

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  • The USD/SEK sees upward momentum, hovering near the 10.470 level.
  • The US Dollar fortifies its stance amid hawkish FOMC minutes, which saw members not satisfied with the progress on inflation.
  • Indicators remain in oversold conditions.

The USD/SEK pair is catching some wind in Tuesday’s trading session, ascending to around 10.470, tractioned by a resurgence in the US Dollar after the Federal Open Market Committee  (FOMC) minutes. 

In that sense, the minutes from the November meeting, where the Federal Reserve maintained steady interest rates, saw members considering “limited” the progress made on inflation and pointing out that they may need further evidence to confirm that inflation is cooling down. In that sense, as these minutes may turn down the latest hype due to the soft Consumer Price Index (CPI) reading from the US from October, it will all come down to the incoming data.

On Wednesday, the US will report Durable Good Orders figures from October and on Friday, S&P Global will report November PMIs. Until the Fed’s December meeting, the bank will also receive an additional job and inflation report, which will have more influence on the decision.

USD/SEK levels to watch

The technical analysis indicates a prevailing selling momentum in the short term. Despite the asset being in oversold conditions according to the Relative Strength Index (RSI), this often serves as a potential reversal signal, suggesting that the buyers might be preparing to step back in. However, the broader picture furnished by the Simple Moving Averages (SMAs) – with the asset trading below the 20, 100, and 200-day SMAs reflects a stronger bearish bias.

The rising red bars of the Moving Average Convergence Divergence (MACD) substantiates the mounting selling pressure. Yet, its worth noticing that bears appear to be taking a breather after pushing the asset to its multi-month lows since July, which, combined with the RSI in oversold conditions, may imply a potential short-term bullish reversal.

Support Levels: 10.350, 10.200, 10.150.
Resistance Levels: 10.520, 10.600, 10.670 (200-day SMA).

USD/SEK daily chart

 

 

 

 

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