- The Swedish Krona consolidated within narrow ranges as investors eye Riksbank's rate decision due tomorrow.
- Sweden's central bank is expected to keep its benchmark interest rate at zero and unlikely to alter its stance in the short term.
- The Riksbank raised its benchmark repo rate by 25bps to 0 percent during its December meeting, ending five years of negative interest rates despite signs of a slowing economy.
- EUR/SEK trades flat at 10.5376, having hit a low of 10.5269 on Wednesday, its lowest since January 24.
- Technical indicators are bearish: RSI weak at 46.17, MACD supports downside and Stochs are at oversold levels.
- Immediate resistance is located at 10.5593 (5-DMA), any close above could take it near 10.5670.
- On the lower side, support is seen at 10.5242, break below could take it till 10.5210.
Recommendation: Good to sell on rallies around 10.5350, with stop loss of 10.5425 and target price at 10.5210.
