Preparing for the publication of economic data in Sweden
In this review, we would like to draw your attention to the Euro/Swedish Krona currency pair. Will the EURSEK rise?
Such a movement means the strengthening of the euro and weakening of the Swedish krona. At the end of September last year, the Swedish Central Bank (Riksbank) raised the rate from -0.25% to 0%. After that, the exchange rate of the krona noticeably strengthened against the euro. Now, the Riksbank rate coincides with the ECB rate. Meanwhile, the EU economic indicators look a little better, which may cause an upward correction of the EURSEK. Inflation in Sweden is 1.8%, while in the Eurozone it is only 1.3%. The trade balance of Sweden has fluctuated around zero since 2014 and is often negative in monthly terms. The Eurozone trade balance is continuously positive. A number of significant macroeconomic data will be released in Sweden this and next week which may affect the Riksbank’s decision on the rate at its next meeting on February 12. The most important indicator may be inflation in Sweden for December, which will be published on January 15.
On the daily timeframe, the EURSEK: D1 bounced off the support line of the neutral channel and is trying to move towards its upper boundary. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of negative economic indicators in Sweden.
Summary of technical analysis
In this review, we would like to draw your attention to the Euro/Swedish Krona currency pair. Will the EURSEK rise?
Such a movement means the strengthening of the euro and weakening of the Swedish krona. At the end of September last year, the Swedish Central Bank (Riksbank) raised the rate from -0.25% to 0%. After that, the exchange rate of the krona noticeably strengthened against the euro. Now, the Riksbank rate coincides with the ECB rate. Meanwhile, the EU economic indicators look a little better, which may cause an upward correction of the EURSEK. Inflation in Sweden is 1.8%, while in the Eurozone it is only 1.3%. The trade balance of Sweden has fluctuated around zero since 2014 and is often negative in monthly terms. The Eurozone trade balance is continuously positive. A number of significant macroeconomic data will be released in Sweden this and next week which may affect the Riksbank’s decision on the rate at its next meeting on February 12. The most important indicator may be inflation in Sweden for December, which will be published on January 15.
On the daily timeframe, the EURSEK: D1 bounced off the support line of the neutral channel and is trying to move towards its upper boundary. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of negative economic indicators in Sweden.
- The Parabolic indicator gives a bullish signal.
- The Bollinger bands have narrowed, which indicates low volatility. Both Bollinger bands are titled upward.
- The RSI indicator is above 50. It has formed a positive divergence.
- The MACD indicator gives a bullish signal.
Summary of technical analysis
Position | Buy |
Buy stop | Above 10.55 |
Stop loss | Below 10.4 |
