By Anton Eljwizat – After hitting new highs against the U.S. Dollar in trading last week, the Scandinavian Kroner reversed their gains following the release of better than expected American unemployment figures. Last week the Norwegian Krone reached near-record highs against the dollar, trading at 5.572 Thursday morning. Additionally the DKK was fairing particularly well against the greenback at this time, trading at a weekly high of 4.9173.
These gains were reversed following the American unemployment figures released on Friday. Currently, the currencies are trading at 5.6699 and 5.0318 respectively against the Dollar. Traders may want to take this information into account with regards to this week. Most analysts are predicting a Dollar resurgence, and the Scandinavian currencies will likely be affected by this.
The Scandinavian Kroner were able to fair significantly better against the Euro. Currently the Norwegian Krone is trading at 8.4724 against the Euro, compared to levels approaching 8.5500 last week. Comparatively, the Danish Krone is currently at 7.4413 against the Euro compared to 7.4424 a week ago. As the Euro is also currently weak due to the Dollar gains, traders may want to take the advances made by the Kroner into account.
Technical Analysis
• The chart below is the 4-hour chart of the USD/SEK currency pair.
• The indicators used are the Slow Stochastic, Williams Percent Range, and RSI.
• Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 3: The Williams Percent Range has peaked at the 0 marker and has turned bearish; this means that there may actually be a strong level of downward pressure.
USD/SEK 4-Hour Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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