- The Swedish Krona eased following the release of Sweden's downbeat producer price index, consumer inflation expectations and unemployment rate.
- Sweden's consumer inflation expectation came in at 3.3 percent in July, after rising to 3.4 percent in May.
- The economy's unemployment rate surged to 7.6 percent in June from previous month's reading of 6.8 percent, and above a forecast of 6.9 percent.
- The selling pressure further intensified after producer price index (PPI) plunged 0.2 percent in June, while on an anualized basis it fell to 2.5 percent from 3.5 percent.
- USD/SEK trades 0.4 percent up at 9.4575, having hit a 2-week peak in the previous session, its highest since July 9.
- Technical indicators support upside: RSI strong at 56.09 and Stochs are biased higher.
- Immediate resistance is located at 9.4899 (trendline joining 9.4996 and 9.4875), close above could take it near 9.5529 (June 19 High).
- On the flip side, support is seen at 9.4042 (55-EMA), break below could take it till 9.3717 (61.8% retracement of 9.3002 and 9.4875)
Recommendation: Good to buy on dips around 9.4159, with stop loss of 9.4042, target price at 9.4875
