- The Swedish Krona rallied to a near 1-week peak after the release of better than expected new orders.to industry.
- Sweden's new orders rose at an annualized rate of 7.5 percent in June, following a downwardly revised 2.8 percent gain in the previous month, recording its strongest gain in total new orders since July 2018.
- However, the upside in the Swedish currency is limited as industrial production slumped 1.1 percent in June, while on year-on-year it declined 0.2 percent.
- USD/SEK trades flat at 9.6000, having hit a low of 9.5670 earlier, its lowest since July 31.
- Technical indicators support downside - Stochs are biased lower.
- Immediate resistance is located at 9.6164 (5-DMA), break above could take it near 9.7000 (August 1 High).
- On the lower side, support is seen at 9.5527 (July 31 Low), close below could dag it till 9.5382 (10-DMA).
Recommendation: Good to sell on rallies around 9.6050, with stop loss of 9.6164 and target price at 9.5382.
