- The Swedish Krona edged up against the euro, extending previous session gains on Sweden's upbeat household consumption figures.
- Sweden's household consumption increased 0.8 percent in July, recovering from a revised flat reading in June.
- However, the upside in the Swedish currency appears limited after a separate report showed the annual inflation rate in Sweden declined to 1.4 percent in August from 1.7 percent in July, below expectations of 1.7 percent
- On a monthly basis, the Consumer Price Index decreased 0.4 percent in August after posting a rise of 0.4 percent in June.
- EUR/SEK trades 0.1 percent down at 10.6413, having hit a high of 10.7739 on Tuesday, its highest since September 4.
- Major support is seen at 10.6125 (trendline joining 10.6019 and 10.6099)
- Technical indicators support bearish trend - RSI weak at 43.81, MACD support downside and Stochs are heading into oversold levels.
- Immediate resistance is located at 10.7022 (21-EMA), close above could take it near 10.7321 (Aug. 22 High).
- On the lower side, support is seen at 10.6125, break below could take it till 10.5902 (June 3 Low)
Recommendation: Good to sell on rallies around 10.6490, with stop loss of 10.6633, target price at 10.6125 / 10.5902
