BUZZ-COMMENT-A tidy EUR/SEK trade presents itself this week

The Swedish fundamental backdrop favours the SEK and the technical picture presents a trade strategy for those looking to go long.

Sep 21 (Reuters)- - The Swedish fundamental backdrop favours the SEK and the technical picture presents a trade strategy for those looking to go long.

EUR/SEK was firmer early Monday and is set to challenge the daily Ichimoku cloud top at 10.4078. While the cloud top has proved a difficult hurdle to clear the key resistance point has been the 100-day moving average line.

The long-term average has been above the market on a closing basis since early May and has shut the door on EUR/SEK a number of times in September. The average is currently at 10.4195. FX traders might consider fading the line with a tight stop-loss above.

Bearish targets are at the 10.3545 Sept. 18 low and the daily Ichimoku cloud base at 10.3034.

Weekly activity is constructive but while price is below the minimum correction level off the major 11.4155 to 10.2165 March-July slide, 10.4995, EUR/SEK has downside potential. The big bear target being the 200 week moving average, currently 10.2265.

The main risk to the trade would be a surprise Riksbank rate cut tomorrow.

For more click on FXBUZ

EUR/SEK daily Ichimoku chart: https://tmsnrt.rs/35UOI9O

EUR/SEK weekly candle chart: https://tmsnrt.rs/3kBkGMo

(Peter Stoneham is a Reuters market analyst. The views expressed are his own)

((peter.stoneham@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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