EUR/SEK to slump towards the 200-DMA at 10.20 on a break below 10.34 – SocGen

EUR/SEK is at risk of suffering further falls on a break under 10.34. In this case, the 200-day moving average (DMA) at 10.20 would be exposed, economists at Société Générale report.

An initial pullback is underway

“Having formed a high near 10.56, an initial pullback is underway. Upper limit of the rectangle pattern at 10.34 which is also the 61.8% retracement from January is first support.” 

“If the 10.34 mark gets violated, there will be a risk of a deeper down move. In such a scenario, next potential support levels would be at 10.29 and the 200-DMA near 10.20.”