Jens Pedersen, Senior Analyst at Danske Bank, suggested occasional up moves in the cross are seen as selling opportunities for the time being.
“Yesterday, EUR/SEK breached below the technically important 200-day moving average at 10.308, which opens the way for the next support level at 10.2275”.
“We have previously alluded to a couple of potentially SEK-negative events that could materialise before the 20 December Riksbank decision, such as the risk of a new election and the seasonal pattern for EUR/SEK going into year-end”.
“We maintain that the cross is a sell on rallies towards 10.40/50 with a 10.20 target as we approach the Riksbank rate hike that is due in December”.
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