- The Swedish Krona rebounded from a record low following better-than-expected inflation data.
- Sweden's Consumer Price Index increased 0.50 percent in September over the previous month, while on annualized basis, the inflation rate rose to 1.5 percent, following a 1.4 percent in August and slightly above market expectations of a 1.3 percent.
- The Swedish currency further extended gains on separate data showing household consumption increased 0.8 percent from a month earlier in August, following a revised 0.5 percent growth in July.
- On Wednesday, the pair rose as high as 10.9333 but trimmed some gains to close at 10.9260, 0.28 percent gain for the day.
- EUR/SEK trades 0.6 percent down at 10.8605, having hit a all-time high of 10.9333 the day before.
- Technical indicators support downside on hourly charts: RSI weak at 22.36, MACD show downtrend and Stochs are biased lower.
- Immediate resistance is located at 10.9448, any close above could take it near 10.9690.
- On the lower side, support is seen at 10.8454, break below could take it till 10.7989 (10-DMA).
Recommendation: Good to sell on rallies around 10.9215, with stop loss of 10.9448, and target price at 10.8454/ 10.8404
