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USDSEK Reverse Losses After Better U.S. Durable Goods Orders


USDSEK turns back to the unchanged level after a high volatile session as investors sentiment still much affected by the developments in the coronavirus outbreak and the monetary measures form Riksbank and Fed. 

On Monday, Fed announced that would buy unlimited amounts of Treasurys and mortgage securities. The Fed will buy $250 billion in mortgage-backed securities and $375 billion in Treasuries. Also will relaunch TALF to support the consumer and business debt and will set two facilities to support the corporate debt markets.  

On the other hand, Riksbank announced an extension of the quantitative easing programme and unlimited liquidity. 

On the data front, the Durable Goods Orders increased by 1.2%, to $249.4 billion. The figure top the market consensus of 0.8% increase. The January’s Durable Goods Orders revised up to -0.1% from -0.2%.

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USDSEK Technical Analysis

USDSEK consolidates after three sessions of loses from the recent highs that drove the pair outside of the overbought area. The technical picture is still bullish despite the recent correction and an attempt to new highs can’t be ruled out.  

On the downside, initial support for USDSEK stands at 10.0357 the daily low. The next support level might emerge at 9.8344 the March 18th lows. 50-day moving average. The 50-day moving average would provide the next support zone at 9.6936. 

On the flip side, first resistance will be met at 10.2116 the daily high. A break above would attract more bids for an attempt to the next resistance level at 10.3528 the high from March 24th. More selling pressure might emerge at 10.4694 the high from March 23.