FxWirePro: EUR/SEK hovers towards multi-year peaks, good to buy on dips
The Swedish Krona declined, hovering towards a 2-1/2 week peak recorded last week as pandemic fears roiled markets, driving a scramble for both safety and funding in the world’s reserve currency. On Friday, the Swedish c…
The Swedish Krona declined, hovering towards a 2-1/2 week peak recorded last week as pandemic fears roiled markets, driving a scramble for both safety and funding in the world’s reserve currency.
On Friday, the Swedish currency rallied after the Riksbank announced that it would lend up to 500 billion Swedish Krona to Swedish companies to ensure that they have the necessary access to liquidity during the coronavirus pandemic.
EUR/SEK trades 0.7 percent up at 10.8523, having hit a high of 10.9536 on Thursday, its highest since July 2009.
Technical indicators are bullish: RSI strong at 64, MACD supports upside and Stochs indicate bullish crossover.
Immediate resistance is located at 10.9000, any close above could take it near 10.9391.
On the lower side, support is seen at 10.7399 (7-EMA), break below could take it till 10.7173.
Recommendation: Good to buy on dipss around 10.8165, with stop loss of 10.7798 and target price at 10.9000.
