EUR/SEK to resume its decline on failure at 10.10 – SocGen

After forming a low near 9.86, EUR/SEK has rebounded. But economists at Société Générale expect the pair to resume its move downward if the 10.10 is not cleared.

Downward momentum is still prevalent

“Daily MACD still remains within negative territory which denotes downward momentum is prevalent.”

“Ongoing bounce is expected to find resistance near the channel limit of 10.07/10.10.”

“Failure to reclaim the 10.10 mark can result in persistence of the down move towards recent trough at 9.86 and 9.80, the 50% retracement from 2012. “