- The Swedish Krona rose, extending gains for the third straight session after Riksbank's interest rate decision.
- The central bank of Sweden left its key repo rate unchanged at -0.25 percent, as widely expected.
- The bid tone around the Swedish currency strengthened after data showed Sweden's industrial production rose 3.2 percent year-on-year in July, following an upwardly revised 1.1 percent fall in the previous month, while on monthly basis, industrial production increased 1.3 percent in July.
- However, the upside in the Swedish Krona appears limited as domestic total orders to industry fell 2.2 percent year-on-year in July, after a downwardly revised 6.5 percent gain in the previous month.
- USD/SEK trades 0.7 percent down at 9.6583, having hit a low of 9.6528 earlier, its lowest since August 27.
- Momentum indicators show bearish trend - Stochs are biased lower and MACD supports downside.
- Immediate resistance is located at 9.7855 (Aug. 29 High), break above could take it near 9.8929 (Sept 3 High).
- On the lower side, support is seen at 9.6223 (August 27 Low), break below could take it till 9.5748 (55-EMA).
Recommendation: Good to sell on rallies around 9.7271, with stop loss of 9.7855, target price at 9.6223
