- The Swedish Krona surged, reversing most of its previous session losses, following mixed economic data releases.
- Sweden's business sentiment index for total industry fell to 96.2 in September of from a downwardly revised 96.5 in the previous month
- Separate data showed inflation expectations increased to 3.50 percent in September from 3.30 percent in August.
- Producer Prices decreased to 114.10 Index Points in August from 114.70 Index Points in July, while total lending to households rose 4.9 percent year-on-year in August.
- EUR/SEK trades 0.2 percent down at 10.6556, having hit a low of 10.6399 the day before, its lowest since September 17.
- Technical indicators support downside: RSI weak at 46.44, MACD show downtrend and Stochs indicate bearish crossover.
- Immediate resistance is located at 21-DMA
- Next resistance level is located at 10.7154 (September 17 High), close above could take it near 10.7308.
- On the lower side, support is seen at 10.6285, break below could take it till 10.6156 (trendline joining 10.6019 and 10.6290).
Recommendation: Good to sell on rallies around 10.6704, with stop loss of 10.6826, and target price at 10.6399/ 10.6285.
