For a USD pair, the USD/SEK is showing some relative strength compared to other USD pairs this week. It’s worth noting as it has been a leading indicator for the DXY from time to time over the years.

Here is the USD/SEK weekly chart. Notice how the weekly candle is attempting to create a “Hammer” formation at the range lows.

Here is the USD/SEK (candle) and DXY (blue line) weekly charts. Notice how the USD/SEK surged many weeks ahead of the DXY in early 2014

 

Blake Morrow

Chief Currency Strategist, Wizetrade