The USD/SEK is attempting a weekly breakout (nearly 4 year trend line) above the critical 5.5600 level. RSI is breaking higher as well, confirming the SEK weakness. Just last week Sweden’s CPI registered the lowest level we have seen in years which confirms the weakness in the SEK as traders and investors fear the Riksbank may take further stimulus measures to fight deflationary pressures. .

 

 

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I am currently long the USD/SEK and intend on staying long for several days.