SEK likely to strenghten further against EUR.
Updated
The SEK comes from weak valuations compared to other
currencies, mostly because of the negative interest rate
policy of Swedens reserve bank, the Riksbank.
The zero percent interest rate policy has been considered a failed policy and is therefore not very likely to be revisited by the Riksbank. Simultanously, weaker member nations within the European union (EU) project forces EU to lend and give money to the weaker nations in order to keep them within the EUR project.
These two dynamics should be favorable to the SEK.
Trade setup
The EUR/SEK recently had a retracement which provides a good opertunity to short EUR/SEK. I set my stop-loss just above the retracement peak at 10.326. My initial profit target is around the recent low around 10.21 and my second profit target is just above the major trend line since Marce 2013 plotted on the price chart.
currencies, mostly because of the negative interest rate
policy of Swedens reserve bank, the Riksbank.
The zero percent interest rate policy has been considered a failed policy and is therefore not very likely to be revisited by the Riksbank. Simultanously, weaker member nations within the European union (EU) project forces EU to lend and give money to the weaker nations in order to keep them within the EUR project.
These two dynamics should be favorable to the SEK.
Trade setup
The EUR/SEK recently had a retracement which provides a good opertunity to short EUR/SEK. I set my stop-loss just above the retracement peak at 10.326. My initial profit target is around the recent low around 10.21 and my second profit target is just above the major trend line since Marce 2013 plotted on the price chart.
Trade active
Trade closed: stop reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.