USD/SEK: Larger correction looks on the cards - SocGen

USD/SEK faced stiff resistance near 2009 highs of 9.34/9.50 and since then it has been undergoing a steady decline and in view of analysts at Societe Generale, a large correction cannot be ruled out in the near-term.

Key Quotes

“It is now tentatively holding above monthly MA at 8.64/8.60. However in light of monthly indicators that have posted negative divergence and have given a sell signal, a larger correction looks on the cards. When 8.64/8.60 gives way, USD/SEK will extend the down move towards 8.48 and even towards a projection at 8.33. The daily channel at 8.88/8.92 caps near term upside while 9.12 will be an important resistance.”