- The Swedish Krona declined, reversing most of its previous session gains following the release of downbeat retail sales.
- Sweden's retail sales remained flat in August following a downwardly revised 0.3 percent in the previous month and missing expectations of 0.2 percent gain.
- On an annualized basis, retail sales increased 2.7 percent in August, easing from a downwardly revised 3.9 percent rise in July and below expectations of a 3 percent advance.
- EUR/SEK trades 0.2 percent up at 10.6776, having hit a low of 10.6399 on Wednesday, its lowest since September 17.
- Technical indicators support downside: RSI weak at 49.35, and MACD show downtrend
- Stochs indicate a bullish crossover, a jump till 10.6919 expected.
- 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 buy on dips around 10.6641, with stop loss of 10.6285 and target price at 10.6919 / 10.7154
