EUR/SEK is the abbreviation for the Euro and Sweden Krone pair. It shows how much the EUR (base currency) is worth as measured against the SEK (counter currency). For example, EUR/SEK = 10.5400 indicates that one Euro can buy 10.5400 Sweden Krones.
Although Sweden is in the Euro-Zone and is required to adopt the Euro currency a loophole has allowed the nation to maintain its 230 year old krona (crown). The EUR/SEK has been in a 6-week rally since late-December lows in the 10.1200 region.
Last week, SEK saw further downside pressure after the domestic Services PMI dropped to 54.1 during the first month of the year (from 55.8). This is on top of the Riksbank opening the door for a more neutral stance in the next months.
So what does this mean for the EURSEK, lets go to the charts to find out?
Monthly Chart (Curve Timeframe) – Monthly demand is at 9.0000 and monthly supply is at 10.9000
Weekly Chart (Trend Timeframe) – the longer term trend is up, but price has consolidated for the last 10-11 months.
Daily Chart (Entry) – the chart suggests to wait for a pull back to 10.3500 to go long with a first target at 10.7000.
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.