Forex Market: EUR/SEK daily forecast

During yesterday’s trading session EUR/SEK traded within the range of 8.9533-8.9786 and closed at 8.9631.

At 6:44 GMT today EUR/SEK was losing 0.06% for the day to trade at 8.9568. The pair touched a daily low at 8.9547 at 6:02 GMT.

Fundamental view

At 7:30 GMT Sveriges Riksbank is expected to announce its decision on borrowing costs. The median forecast by experts points that the central bank will probably leave its repo rate without change at 0.75% at the policy meeting today. The benchmark rate has been at this level since banks meeting on December 18th 2013. The repo rate represents the rate at which banks can borrow or deposit funds at the Riksbank for a period of seven days. Short-term interest rates are of utmost importance for the valuation of national currencies. In case the central bank left intact or raised its repo rate, this would have a bullish effect on the krone.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/SEK manages to breach the first resistance level at 8.9767, it will probably continue up to test 8.9903. In case the second key resistance is broken, the pair will probably attempt to advance to 9.0020.

If EUR/SEK manages to breach the first key support at 8.9514, it will probably continue to slide and test 8.9397. With this second key support broken, the movement to the downside will probably continue to 8.9261.