EUR/SEk to extend its bounce towards the 10.52/54 zone – SocGen

EUR/SEK formed a low near 10.00 in December last year. Since then, the price action has turned sideways. Economists at Société Générale note that the risks remain skewed to the upside for now, especially on a break above the 10.30/33 region.

200-day moving average at 10.14 offers support

“The EUR/SEK pair has formed a series of higher peaks and troughs in daily timeframe charts recently and is now probing the upper band of the range at 10.30/10.33. Once a breakout materializes, EUR/SEK could unfold an extended bounce towards 10.43 and 10.52/10.54, the 38.2% retracement from last year.”

“The 200-DMA at 10.14 is short-term support.”