The EUR to SEK (EURSEK) pair is in a strong downward trend ahead of the final Riksbank interest rate decision. It is trading at 10.13, which is 10.95% lower than its year-to-date high of 11.38. The same trend is happening on the USDSEK and GBPSEK pairs.
The Riksbank will conclude its final monetary meeting of the year today and then deliver its interest rate decision at 08:30 GMT. Analysts believe that the bank will leave its main interest rate unchanged at 0%. This is also in line with what the bank guided in the previous meeting.
There are divisions on whether the bank will increase the size of its quantitative easing policies. 50% of analysts polled by Bloomberg see the bank leaving the current asset purchases intact. At the same time, 30% of the same economists predict that the bank will increase purchases. So, is the EURSEK a good buy today?
EURSEK technical outlook
On the four-hour chart, we see that the EURSEK price has been on a steep downward trend recently. And yesterday, it reached a low of 10.1170, which was the lowest level since 2018. The price is also supported by the falling pink trendline and the 25-day and 15-day weighted moving averages. It has also moved below the important support at 10.17.
Therefore, if the Riksbank sounds relatively hawkish, the pair could continue falling to possibly 10.10. On the other hand, a dovish Riksbank will see the pair rise slightly to 10.17.