- The Swedish Krona plunged to a 1-week low against the euro, as investors continued to digest yesterday's downbeat unemployment data.
- Sweden’s unemployment rate increased to 7.1 percent in August from 6.1 percent in the same month of the previous year, and surpassing forecast of 5.9 percent as the number of unemployed rose 56 thousand to 393 thousand, while employment declined 36 thousand to 5.13 million.
- EUR/SEK trades 0.3 percent up at 10.7351, having hit a high of 10.7398 earlier, its highest since September 10.
- The pair broke above major resistance at 21-EMA and it is now acting as a support level.
- Technical indicators support upside: RSI strong at 55.30 and Stochs are biased higher.
- Immediate resistance is located at 10.7571 (August 26 High), close above could take it near 10.7850.
- On the lower side, support is seen at 10.6861 (21-EMA), break below could take it till 10.6680 (55-EMA) /10.5646.
- Trend reversal only below 10.6149 (trendline joining 10.6019 and 10.6099).
Recommendation: Good to buy on dips around 10.7064, with stop loss of 10.6861, target price at 10.7571.