Swedish Krona Under Pressure
Tiho Brkan | Feb 23, 2015 03:39AM ET
Unless you have been living under a rock or in a underground cave, you've surely have noticed how the powerful US dollar has been rallying against just about every other global currency. Media coverage has been focused towards currencies which have been falling apart, such as the Russian ruble. Majority of investors, including myself, have been discussing the European euro, showing how oversold it is.
However, one currency that isn't frequently discussed, and yet has been totally hammered by the US dollar, is the Swedish krona. Out of all the majors, Swedish Krona has performed the worst over the last 12 months (refer to Chart above). The currency has lost about quarter of its value, as the greenback has managed an impressive rally of 12 monthly candles in the row.
Impressive rallies such as these definitely let us know that from the short to medium term perspective, US dollar trend is now highly recognized and over-owned. Therefore, investors who are thinking of buying the dollar right here and right now should exercise caution and patience. In my opinion, there is an above average probably that the greenback is due for a major correction or at least a pause in the uptrend.
h3 Falling for 12 monthly candles in the row against the US dollar/h3/h2
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