USDSEK Hits Monthly Lows On Stronger Sweden Industrial Data

Summary:

USDSEK continues lower for the sixth consecutive day, making fresh monthly lows in a volatile trading session. Investors cheered today better than expected

USDSEK continues lower for the sixth consecutive day, making fresh monthly lows in a volatile trading session. Investors cheered today better than expected Industrial production data. The Sweden Industrial Production Value came in at 0.5% in May a sharp improvement of the previous month -15.9%; the yearly Industrial Production Value rose to -15.5% in May from previous -16.6%.

From the USA, the Redbook Index rose to -0.6% on July 3, from previous -0.7%, while the yearly reading came down to -6.9% on July 3 from previous -5.7%. Yesterday stronger economic data failed to help the greenback. The U.S. ISM Non-Manufacturing PMI came in at 57.1 beating the market consensus of 50.1 in July. The ISM Non-Manufacturing New Orders Index registered in at 61.6 also above the expectations of 44 in June. The ISM Non-Manufacturing Employment Index registered in at 43.1, topping the forecasts of 30.7.

The Services PMI reported at 47.9, above the analyst’s expectations of 46.7 in June. The PMI Composite came in at 47.9, topping the estimates of 46.8.

USDSEK Daily Technical Analysis

USDSEK is 0.03% lower at 9.2392, making fresh monthly lows. The technical outlook for USDSEK is clearly bearish, and lower levels might be on the card. Only a break above the 50-day moving average at 9.4917 might cancel the recent negative momentum.

On the downside, the initial support for the USDSEK pair will be met at 9.2137 the daily low. The next support area for USDSEK might emerge at 9.1640 the low from June 11th. The next support stands at 9.1294 the low from June 5th.

On the flip side, first resistance for USDSEK will be met at 9.3121 the daily high. A break above 9.3121 might attract more bulls for an attempt to the next resistance level at 9.4916 the 50-day moving average. Bulls would be back in control above 9.4916 and might challenge 9.6421 the 200-day moving average.