- The Swedish Krona surged to a fresh 4-month peak hit following better-than-expected economic data.
- Sweden's total lending to households rose 4.8 percent year-on-year to SEK 4,168 billion in October, following an upwardly revised 5 percent gain in the previous month.
- Separate data showed, the country's trade gap narrowed to SEK 4.0 billion in October from SEK 90 billion in the corresponding month of the previous year.
- Yesterday's better-than-expected producer prices also continued to boost the upside in the Swedish currency.
- EUR/SEK trades 0.1 percent down at 10.5575, having hit a low of 10.5469 earlier, its lowest since July 26.
- Technical indicators are bearish: RSI weak at 30.91, Stochs are at oversold levels and MACD supports downside.
- Immediate resistance is located at 10.5909, any close above could take it near 10.6085.
- On the lower side, support is seen at 10.5362, break below could take it till 10.5176.
Recommendation: Good to sell on rallies around 10.5646, with stop loss of 10.5735 and target price at 10.5362.
