FxWirePro: EUR/SEK rallies following soft Swedish inflation, faces resistance at 21-DMA
Wednesday, April 15, 2020 12:39 PM UTC
- The Swedish Krona eased, extending losses for the third straight session as coronavirus death toll reached 1,000 in Sweden.
- Moreover, the selling pressure around the Swedish currency intensified after data showed the annual inflation rate fell to 0.6 percent in March from 1 percent in the previous month, the lowest since May 2016.
- On a monthly basis, consumer prices fell 0.2 percent, after a 0.5 percent gain in February and compared to forecasts of a 0.3 percent fall.
- The pair rose as high as 10.9649 on Tuesday but found strong resistance at 21-DMA to close flat at 10.9063.
- EUR/SEK trades 0.2 percent up at 10.9566, having hit a low of 10.8452 on Friday, its lowest since March 17.
- Immediate resistance is located at 10.9675 (21-DMA), any close above could take it near 10.9851.
- On the lower side, support is seen at 10.8660, break below could take it till 10.8452.