EUR/SEK poised for a correction, still a ‘buy on dips’ – Danske Bank

The cross could attempt a correction lower although occasional dips area still considered as buying opportunities, suggested Senior Analyst at Danske Bank Mikael Milhoj.

Key Quotes

“EUR/SEK is trading close to our 3M target 10.20 and upside dynamics prevail despite yesterday’s late drop. The RSI suggests the cross is prone for a further correction but we continue recommending buying on dips”.

“Next week will be interesting and could cause some volatility in EUR/SEK while on 14 March Valueguard (09:00) and inflation data (09:30) are due to be published. As for Valueguard, our own indicator suggests that flats prices will correct higher for a second consecutive month (potentially SEK positive). Our CPIF ex-energy estimate is below the Riksbank’s (potentially SEK negative)”.