I talked about a EUR/SEK set-up to go long back in mid-February.
Based on the monthly chart, I thought there was more upside because the EUR/SEK has been in a 6-week rally since late-December lows in the 10.1200 region.
So the set-up was the following:
The Swedish krona depreciates further vs. its European peer on Wednesday, lifting EUR/SEK to fresh 2019 peaks in the vicinity of the 10.6800 handle.
The increasing selling mood in the Swedish currency remains the name of the game around the cross for the time being, which has now advanced to the area last traded in August 2018 near the 10.6800 milestone.
SEK has regained downside pressure particularly after the Riksbank left its monetary policy unchanged at its meeting last week. Despite efforts from Riksbank’s officials to remove pressure on the Krona and rhetoric over a potential rate hike at some point by year-end, investors appear sceptical over this scenario amidst the persistent lack of convincing traction in domestic consumer prices.
Price did pull back the daily demand, and eventually hitting the target, the daily supply.
I didn’t get a chance to go long, price just nipped the upper portion of the zone…I was waiting for price to penetrated the zone.
I will look to short this forex pair once I see signs of a reversal, but I think the pair moves higher before it moves lower.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.