FxWirePro: EUR/SEK treads water as investors remain cautious ahead of Riksbank's policy outcome
The Swedish Krona consolidated within narrow ranges as investors eye Riksbank's rate decision due tomorrow. Sweden's central bank is expected to keep its benchmark interest rate at zero and unlikely to alter its stance i…
The Swedish Krona consolidated within narrow ranges as investors eye Riksbank's rate decision due tomorrow.
Sweden's central bank is expected to keep its benchmark interest rate at zero and unlikely to alter its stance in the short term.
The Riksbank raised its benchmark repo rate by 25bps to 0 percent during its December meeting, ending five years of negative interest rates despite signs of a slowing economy.
EUR/SEK trades flat at 10.5376, having hit a low of 10.5269 on Wednesday, its lowest since January 24.
Technical indicators are bearish: RSI weak at 46.17, MACD supports downside and Stochs are at oversold levels.
Immediate resistance is located at 10.5593 (5-DMA), any close above could take it near 10.5670.
On the lower side, support is seen at 10.5242, break below could take it till 10.5210.
Recommendation: Good to sell on rallies around 10.5350, with stop loss of 10.5425 and target price at 10.5210.
