EUR/SEK: At risk of an extended down move on failure to defend 11.40 – SocGen

EUR/SEK ended Monday around the 11.45 mark. Economists at Société Générale analyze the pair’s outlook.

Failure to recapture 11.54 could spark deeper drop

EUR/SEK has given a break below its 200-DMA and is at the lower limit of its range since July near 11.40. This is a crucial support.

It would be interesting to see if the pair can reclaim the MA near 11.54. Inability to cross above this could eventually lead to a deeper downtrend. 

In case the pair fails to defend 11.40, there would be risk of an extended down move. Next objectives are located at projections of 11.31 and 11.19/11.16.