EUR/SEK off highs, back near 9.2200

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The Swedish krona is retreating for the second consecutive session so far, sending EUR/SEK to the 9.2200 area.

    EUR/SEK attention to the Riksbank

    The cross is snapping a 3-week negative streak today fuelled by a renewed softer tone around SEK, as fears of intervention by the Riksbank seem to have alleviated some upside pressure around the krona.

    “Speculation that the Riksbank could intervene in the FX market around the EUR/SEK 9.00-9.10 level is likely to lend support at least in the short term. However, on any extended bout of EUR weakness the Riksbank will have to show the market the colour of its money in order to maintain its credibility”, noted Jane Foley, Senior Currency Strategist at Rabobank.

    EUR/SEK levels to watch

    The cross is now advancing 0.17% at 9.2183 facing the next hurdle at 9.2504 (50% Fibo of 9.3833-9.1173) followed by 9.2873 (55-day sma) and then 9.3406 (100-day sma). On the downside, a break below 9.1803 (23.6% Fibo of 9.3833-9.1173) would open the door to 9.1413 (low Jan.4) and finally 9.1173 (low Dec.30).
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