- The Swedish Krona plunged to a fresh 1-week trough following the release of worse-than-expected service PMI.
- Sweden's services PMI tumbled to a seasonally adjusted 47.9 in November from a downwardly revised 49.4 in the previous month, recording its third straight contraction.
- However, the downside in the Swedish currency appears limited as the country recorded a current account surplus of 68.80 SEK billion in the third quarter.
- EUR/SEK trades 0.2 percent up at 10.5835, having hit a high of 10.5845 earlier, its highest since November 26.
- Technical indicators are bullish on hourly charts: RSI strong at 64.21, Stochs are biased higher and MACD supports upside.
- Immediate resistance is located at 10.5919, any close above could take it near 10.6181.
- On the lower side, support is seen at 10.5256, break below could take it till 10.5123.
Recommendation: Good to buy on dips around 10.5522, with stop loss of 10.5256, and target price at 10.5919.
