Societe Generale analysts note that the central bank of Sweden, Riksbank left rates on hold this morning at 1.75% and EUR/SEK has been rebounding from an interim low and is now challenging its 200-day moving average, which has capped the pair since last year. They flag nearby resistance and upside objectives, while stressing that defending the April low is crucial to avoid a deeper pullback in the cross.

Cross eyes resistance and October highs

"Sweden’s Riksbank left rates on hold this morning at 1.75% and signalled it is not in a rush to tighten after friendlier inflation data in recent months."

"EUR/SEK has experienced a gradual rebound after carving out an interim low near 10.50. It is now challenging the 200-DMA."

"The pair has struggled to overcome this moving average since last year. The recent pivot high of 10.90 is the first resistance."

"If the pair overcomes this hurdle, a larger rebound cannot be ruled out. The next objectives could be located at the last October/November highs near 11.05/11.10."

"Defence of the April low near 10.74 is crucial to avert a deeper pullback."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)