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USD/SEK falls as Dollar consolidates gains

  • The USD/SEK stands at 10.908 with losses of 0.10%.
  • US Treasury yields retreated after Thursday’s sharp rise.
  • All eyes are on next week’s US October CPI data.

He USD/SEK showed minimal downward movements around the 10,908 area on Friday. The pair fell as the Dollar consolidated the week’s gains, while falling US yields and negative consumer sentiment data from the University of Michigan are causing the Dollar to struggle for interest.

On the data front, the University of Michigan revealed that its November Consumer Sentiment Index came in below expectations at 60.4 versus the consensus of 63.7 and fell from its previous reading of 63.8. That said, no other major reports were released during the week as attention turns to next week’s October US Consumer Price Index (CPI) numbers, which are expected to show a slight deceleration.

It should be noted that the hawks of the Federal Reserve (Fed) and its president, Powell, stated during the week that they left the door open to further tightening, so the result of the inflation or labor market data may shape the expectations of the entity’s next decisions. For now, the odds of a 25 basis point hike for the December meeting are low, around 10%.

Elsewhere, the Fed’s hawkish rhetoric revived US yields, with the 2-year Treasury yield rising back to 5%, while 5- and 10-year rates rose to as high as 5%. 4.59% and 4.60%, which allowed the USD to gain interest, driving the pair higher.

USD/SEK Levels to watch

Based on the daily chart, the technical outlook for USD/SEK remains neutral to bearish as the bears are taking a breather after sending the pair down more than 2%. The Relative Strength Index (RSI) has turned flat below its midline, while the Moving Average Convergence (MACD) prints flat red bars.

In a broader context, the pair is below the 20-day SMA, but above the 100-day and 200-day SMA, indicating favorable positioning for the bulls in the bigger picture.

Supports: 10,861 (100-day SMA), 10,822, 10,811.
Resistances: 10,950, 10,973, 11,000 (20-day SMA).

USD/SEK Daily Chart

USD/SEK

Overview
Latest price today 10.9054
Daily change today -0.0184
Today’s daily variation -0.17
Today’s daily opening 10.9238
Trends
daily SMA20 11.0359
daily SMA50 11,049
SMA100 daily 10.8693
SMA200 daily 10.6846
Levels
Previous daily high 10.9252
Previous daily low 10.8282
Previous weekly high 11.2449
Previous weekly low 10.8692
Previous Monthly High 11.2275
Previous monthly low 10.8482
Daily Fibonacci 38.2 10.8881
Fibonacci 61.8% daily 10.8652
Daily Pivot Point S1 10.8595
Daily Pivot Point S2 10.7953
Daily Pivot Point S3 10.7625
Daily Pivot Point R1 10.9566
Daily Pivot Point R2 10.9895
Daily Pivot Point R3 11.0537

Source: Fx Street

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