FxWirePro: EUR/SEK declines below 11.000 level, minor support at 7-EMA
The Swedish Krona surged, extending previous session gains as the Riksbank stated that it is prepared to take further measures to supply additional liquidity. Earlier in the week, the Riksbank unveiled measures to cushio…
The Swedish Krona surged, extending previous session gains as the Riksbank stated that it is prepared to take further measures to supply additional liquidity.
Earlier in the week, the Riksbank unveiled measures to cushion the Swedish economy from the effects of coronavirus.
Sweden's central bank offered more loans to banks at favourable terms and increased asset purchases in order to allow additional liquidity into the system and prevent any blockages.
On Thursday, the pair rallied to an 11-year peak but retraced to close 0.5 percent lower at 11.1088.
EUR/SEK trades 0.6 percent down at 11.0528, having hit a high of 11.3520 the day before, its highest since March 2009.
Technical indicators are bearish: RSI points south and Stochs have rolled over from overbought levels.
Immediate resistance is located at 11.2068, any close above could take it near 11.2420.
On the lower side, support is seen at 10.9483 (7-EMA), break below could take it till 10.9106 (50% Fib).
Recommendation: Good to sell on rallies around 11.1001, with stop loss of 11.1484 and target price at 10.9483.
