EUR/SEK Technical Analysis: Downside calling, Sweden faces the risk of a hung parliament
|- Sweden is facing a risk of political deadlock after the far-right Sweden Democrats party put on a good show in Sunday's elections. Still, the EUR/SEK technical chart is biased toward the bears, meaning the Swedish Krona (SEK) is likely to appreciate.
- The 5-day, 10-day moving averages (MAs) are trending south, indicating a short-term bearish setup. The pair closed on Friday below the key support of 10.475 (July 2 high), strengthening the bear grip around the pair. Further, the relative strength index (RSI) has adopted a bearish bias.
- Only a move above 10.61 (Sep. 6 high) would signal the pullback from the Aug. 29 high of 10.73 has ended.
Daily Chart
Spot Rate: 10.45
Daily High: 10.4845
Daily Low: 10.4480
Trend: Bearish
R1: 10.5170 (Sep. 5 low)
R2: 10.5715 (10-day MA)
R3: 10.6082 (Sep. 6 high)
Support
S1: 10.4480 (session low)
S2: 10.4005 (50-day MA)
S3: 10.3646 (100-day MA + trendline drawn from the June 15 low and July 30 low)
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