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11 Nov 2014
Today’s rally weakens the technical picture for EUR/SEK - Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank highlights that firmer than expected release of Swedish October CPI inflation data made the SEK rally vs. the EUR this morning, pushing through a 100 day sma, but warns of a further downside pressure near-term.
Key Quotes
“The better tone of the SEK today has resulted in EUR/SEK pushing through the 100 day sma at EUR/SEK9.1981.“
“This has weakened the technical picture for EUR/SEK which would imply an increased the risk of further downside pressure near-term.“
“That said, we would expect the very dovish tone of the Riksbank to offset SEK buying and look for a move back towards EUR/SEK9.30 in the coming months.”
Key Quotes
“The better tone of the SEK today has resulted in EUR/SEK pushing through the 100 day sma at EUR/SEK9.1981.“
“This has weakened the technical picture for EUR/SEK which would imply an increased the risk of further downside pressure near-term.“
“That said, we would expect the very dovish tone of the Riksbank to offset SEK buying and look for a move back towards EUR/SEK9.30 in the coming months.”