Yesterday’s trade saw EUR/SEK within the range of 9.5081-9.5958. The daily high has also been the highest level since December 29th. The pair closed at 9.5547, gaining 0.18% on a daily basis.
At 8:11 GMT today EUR/SEK was up 0.08% for the day to trade at 9.5602. The pair touched a daily high at 9.5737 at 7:33 GMT.
Fundamentals
Euro zone
Italian industrial output
Annualized industrial production in Italy probably contracted for a fifth consecutive month, at a pace of 2.7% in November, according to the median forecast by experts, following another 3.0% drop in October. The latter has been the most considerable annual decline since August 2013, when output shrank 4.6%. Italian seasonally adjusted index of industrial production probably rose 0.1% in November compared to a month ago, neutralizing the 0.1% dip in October. The index reflects the change in overall inflation-adjusted value of output in sectors such as manufacturing, mining and utilities. In case output shrank more than anticipated, this would have a limited bearish effect on the common currency. The National Institute of Statistics (Istat) is to release the official industrial data at 9:00 GMT.
Sweden
Consumer inflation
Sweden’s annualized index of consumer prices (CPI) probably fell 0.6% in December, according to expectations, following a 0.2% drop in November. If so, this would be the lowest annual rate of inflation since March 2014, when a rate of -0.6% was reported. The index measures the change in price levels of a basket of goods and services from consumer’s perspective and also reflects purchasing trends. The nation’s annualized core CPI probably advanced 0.3% last month, after a 0.6% increase in November. In case consumer inflation was lower than anticipated, this would certainly lead to a sell-off of the local krone. Statistics Sweden is to release the official report at 8:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 9.5529. In case EUR/SEK manages to breach the first resistance level at 9.5976, it will probably continue up to test 9.6406. In case the second key resistance is broken, the pair will probably attempt to advance to 9.6853.
If EUR/SEK manages to breach the first key support at 9.5099, it will probably continue to slide and test 9.4652. With this second key support broken, the movement to the downside will probably continue to 9.4222.
The mid-Pivot levels for today are as follows: M1 – 9.4437, M2 – 9.4876, M3 – 9.5314, M4 – 9.5753, M5 – 9.6191, M6 – 9.6630.
In weekly terms, the central pivot point is at 9.4857. The three key resistance levels are as follows: R1 – 9.5945, R2 – 9.6551, R3 – 9.7639. The three key support levels are: S1 – 9.4251, S2 – 9.3163, S3 – 9.2557.