EUR/SEK to move downward on break below 10.1575 fueled by Riksbank hawkishness – TDS

EUR/SEK has spent most of the year in a choppy sideways trend with a slight upside drift. Economists at TD Securities will be keeping an eye on a speech from Riksbank Governor Ingves. While not necessarily the base case scenario, krona bulls are keeping a close eye on support around 10.1575 and the 200-DMA (10.1516) in case any unexpectedly hawkish signals arise.

Krona bulls are keeping a close eye on the 10.1575 area

“We will be keeping an eye on a speech from Riksbank Governor Ingves, who will give us an update on Sweden’s economic situation and monetary policy.”

“We have seen 10.1575 emerge as an interesting support level over the last month or two. We’ll need to see if we get any meaningful signals today, but a close below there on any unexpectedly hawkish pivot could see more of a trend move start to develop. Otherwise, we would look to 10.2550 to provide initial resistance to the upside.”