by Darius Anucauskas

EUR/SEK – The Swedish Krone Looks Weaker Than The Euro

EUR/SEK continues to trade above its upside support line taken from the low of the 14th of June. The pair is also knocking on the door of an important resistance area between 10.395 and 10.403 levels.

For now, we believe that there is potential for EUR/SEK to continue pushing higher, especially if it breaks the aforementioned area of resistance and stays above. The next potential test zone could be the 10.474 level, marked by the peak of the 2nd of July. If that level is not able to withhold the rate from accelerating further, then this could lead the pair towards the 10.547 barrier, which was the peak of the 8th of May.

We should not exclude a scenario, where EUR/SEK could travel all the way down to test the abovementioned upwards moving trendline, which could also act as good bouncing ground. The pair could then move back up towards the previously mentioned levels.

On the downside, if eventually a break of the trendline happens, this could interest more bears to jump into the action and drive EUR/SEK lower. The first good potential area of support could be the 10.257 area, which if broken could lead to a test of the 10.211 hurdle, marked near the low of the 5th of July.