After Selloff In FX Pairs Last Week, A Reversal Is Expected?
Before the end of the previous week's trading session, the currency pairs which were the worst performing were the USD/SEK, NZD/USD, and the USD/PKR. The USD lost around 4.91% against the PKR and around 2.04% against the SEK. On the other hand, the NZD lost around 2.61% against the USD.
Now the next question is where these currency pairs are headed for this week... To figure this out, we will look at the strength of the trends to figure out whether a bullish or bearish trend is expected. Furthermore, we will also figure out whether a rebound is on the cards or not!
If we look at the USD/PKR currency pair, it was bearish for the short-term but, in the long-term, is bullish. However, let's not forget that the 240.00 zone is a strong resistance where a double top formation has been completed. Experts believe that this technical formation is the reason for the USD/PKR descent. But let's not forget that the change of Pakistan's Finance Minister also has a lot to do with the USD sell-off in the country.
The dominant trend on the NZD/USD chart is bearish, which was what we saw during the last week as well. The last trading candle in the previous weak was below the support area of 0.5625 - This is an indication that the NZD/USD pair will continue its descent for the current week as well!
Experts believe that NZD/USD has the potential to reach 0.5469, which is the March 2020 low!
The last currency pair on our list is the USD/SEK, which is showing an uptrend on the daily timeframe. Experts believe that if the bearish trend intensifies during the current week, then a retest of the price level around 10.80 is highly likely.
As for the support zone, it is expected to be around 10.45 or somewhere close to that. However, the trend is expected to be bullish, which means that support around the 11.00 area is highly likely.