EUR/SEK Technical Analysis: Downside calling, Sweden faces the risk of a hung parliament

• Sweden is facing a risk of political deadlock after the far-right  Sweden Democrats party put on a good show in Sunday's elections. Still, the EUR/SEK technical chart is biased toward the bears, meaning the Swedish Krona (SEK) is likely to appreciate.
• The 5-day, 10-day moving averages (MAs) are trending south, indicating a short-term bearish setup. The pair closed on Friday below the key support of 10.475 (July 2 high), strengthening the bear grip around the pair. Further, the relative strength index (RSI) has adopted a bearish bias.
• Only a move above 10.61 (Sep. 6 high) would signal the pullback from the Aug. 29 high of 10.73 has ended.

Daily Chart

Spot Rate: 10.45

Daily High: 10.4845

Daily Low: 10.4480

Trend: Bearish

Resistance

R1: 10.5170 (Sep. 5 low)

R2: 10.5715 (10-day MA)

R3: 10.6082 (Sep. 6 high)

Support

S1: 10.4480 (session low)

S2: 10.4005 (50-day MA)

S3: 10.3646 (100-day MA + trendline drawn from the June 15 low and July 30 low)