Technical Analysis – USDSEK turns bullish – surges above 200-DMA to 2-month high
USDSEK has turned bullish in the short to medium term, hitting a 2-month high of 8.2693 earlier today. The pair is currently trading above its moving averages (MA), while the 20-day MA is attempting a bullish crossover with the 50-day MA. The MACD is also pointing to a continuation of the month-long uptrend as it turned positive in late February for the first time since December.
The RSI further underlines the bullish picture in the short term at least as it continues to climb above 50. However, there may be limited room for additional gains in the immediate term as it approaches the 70-overbought territory.
Prices have presently met resistance at the 61.8% Fibonacci retracement of the downleg from 8.5214 to 7.8250, around 8.2550. A successful challenge of this level could open the way towards the 78.6% Fibonacci level at 8.3725. Above that, the 8.50 region is the next key resistance to watch.
To the downside, the 50% Fibonacci level around 8.1730 could provide support if the pair was to reverse lower. A more crucial support area to watch though is the 8.00 handle, which is just below the 38.2% Fibonacci level and is where the 20- and 50-day MAs are converging. A breach of this level would shift the near-term bias back to a more bearish one.