The Swedish Krona weakened against the Euro after the Swedish Central Bank (Riksbank) left the key interest rate unchanged at 0.00%. Also putting pressure on the Krona was the rise in the jobless rate to 10.0% in March.
In making this decision, the Riksbank noted that though the economic activity had improved from February’s assessment, inflationary pressures remained low and therefore did not justify a rate increase. The bank noted the need for more accommodative monetary policy conditions to meet inflation targets.
Apart from the increase in the unemployment rate, a shrinking of the trade surplus contributed to put the Krona on offer this Tuesday. The pandemic remains a concern locally. These conditions allowed the EUR/SEK to gain 0.11% on the day as of the time of writing.
EUR/SEK Technical Levels to Note
The daily chart of the EUR/SEK pair shows an evolving bearish flag, which could point to more downside for the pair. For this to happen, the price needs to break down the flag and the 10.10044 support, which opens the door to the 10.04817 and 10.01157 support levels. The latter would mark the completion point of the measured move from the flag.
On the other hand, if the price can push above the 10.26317 resistance level which also intersects the flag’s upper border, we could see open doors for bulls to attempt to retake the 10.19803 resistance. Above this level, 10.2500 and 10.30084 appear as additional targets to the north.