- The Swedish Krona rallied to a 1-month peak supported by news that the government will spend more to boost the economy.
- The Swedish government will spend more than 100 billion Swedish Krona in its spring mini-budget to cushion the blow on the economy from the coronavirus outbreak.
- Moreover, hopes for a coronvirus cure revived risk-on sentiment, boosting demand for riskier perceived currencies, such as the krona.
- EUR/SEK trades 0.1 percent down at 10.8573, having hit a low of 10.8365 earlier, its lowest since March 17.
- Immediate resistance is located at 10.8911 (5-DMA), any close above could take it near 10.9016 (21-EMA).
- On the lower side, support is seen at 10.8218, break below could take it till 10.8185.
Recommendation: Good to sell on rallies around 10.8686, with stop loss of 10.8741 and target price at 10.8218.
