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FxWirePro: Swedish krona falls sharply after lower than expected CPI data

  • EUR/SEK is currently trading around 9.3308 levels.
     
  • It made intraday high at 9.3431 and low at 9.2891 levels.
     
  • Intraday bias remains bearish till the time pair holds key resistance at 9.3571 marks.
     
  • A daily close below 9.29 will take the parity down towards key supports at 9.2749 and 9.2391 marks respectively.
     
  • On the other side, a daily close above 9.3571 is required to take the parity higher towards key resistance at 9.3642/ 9.3894/ 9.3928 marks.
     
  • On the top side, key resistances are seen at 9.3781(May 19, 2016 high), 9.3967, 9.4102, 9.4682 (high of February 08, 2016) and 9.4942 marks.
     
  • Today Sweden released CPI data with negative numbers to 0.6% y/y vs 0.8% y/y previous release. In addition, Sweden’s CPIF falls to 1.1% y/y vs 1.4% y/y previous release.

We prefer to take long position in EUR/SEK around 9.33, stop loss 9.3039 and target of 9.3638 marks.

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