Swedish crown on course to re-visit 2024 highs
Aug 29 (Reuters) -A combination of bearish technical pointers for EUR/SEK and a market beginning to entertain the idea of a half-point rate cut from the U.S. Federal Reserve in September could help send the crown back to levels around 11.00-11.1000.
A mixed bag of Swedish data, released early in the Thursday session, may have stalled the EUR/SEK fall around the 11.3130 level (new bear trend low) but the cross remains bearish on the day. Final second quarter GDP numbers surprised to the topside with a 0.5% year-on-year rise but a 0.5% annual drop in retail sales and weaker sentiment numbers will keep the dovish pressure on the Riksbank rate path.
On the daily chart, a bearish moving average crossover between the 10-day and 200-day lines has reinforced the overall bearish market structure and highlighted the underlying risk for EUR/SEK to drop further.
EUR/SEK is set to close the week out below the 100-week moving average, 11.3914, and the weekly cloud base, 11.3903. A 76.4% Fibonacci retracement level, taken off the 11.1450-11.7780 June-July rally, provides a bear target at 11.2944.
For more click on FXBUZ
EUR/SEK daily candle chart: https://tmsnrt.rs/4e3RM3c
EUR/SEK weekly Ichimoku chart: https://tmsnrt.rs/3Z2nMAu
(Peter Stoneham is a Reuters market analyst. The views expressed are his own)
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