Forex Market: EUR/SEK daily forecast

During yesterday’s trading session EUR/SEK traded within the range of 8.9760-9.0077 and closed at 8.9999.

At 6:12 GMT today EUR/SEK was gaining 0.23% for the day to trade at 9.0148. The pair touched a daily high at 9.0177 at 6:00 GMT, breaching the first key resistance.

Fundamental analysis

Euro zone

At 08:00 GMT, the Ifo Institute for Economic Research will publish its IFO Business Climate Index for Germany, the largest economy in the Euro zone. The index is expected to have slightly deteriorated to 110.9 this month, from 111.2 in April.

The index is based on a monthly survey among 7,000 respondents from companies in the manufacturing, construction, wholesale and retail sectors. Respondents give their assessments of the current business situation and their expectations for the next six months. They characterize their companies’ situation as “good”, ” satisfactory” or ” poor ” and their expectations for their business over the next six months as ” more favorable “, ” unchanged ” or ” more unfavorable ”. The balance value of the current business situation is the difference between the percentages of respondents that answered the situation is “good” and those that assess it is “bad”, while the value of the balance for future business expectations is the difference between the percentages of the responses ” more favorable ” and ” more unfavorable “. 

Ifo business climate index represents the average balance of the two sub-indexes, the sub-index of current conditions and the sub-index of business expectations. The composite index uses a value of 100 points as a separator between the positive and negative forecasts. The more the result gets away from 100 points, the greater the confidence of the respondents.

A higher than expected reading will certainly provide support to the 18-nation common currency.

Sweden

Consumer confidence in Sweden probably improved to 99.4 in May from 99.0 in the previous month.

The index is based on a monthly survey of households in Sweden. Its purpose is to make a quick qualitative assessment of the plans of households connected to the purchase of new products by exploring the economic situation in Sweden and the state of personal finances. People are also share their expectations about inflation and savings. Data from the survey include the so-called net rates or data showing the difference between positive and negative minded households.

At 7:00 GMT, Statistics Sweden is expected to release data on the nation’s consumer confidence index for April. In case consumer confidence improves more than expected, this would heighten the appeal of the Swedish krona.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/SEK manages to breach the first resistance level at 9.0131, it will probably continue up to test 9.0261. In case the second key resistance is broken, the pair will probably attempt to advance to 9.0448.

If EUR/SEK manages to breach the first key support at 8.9815, it will probably continue to slide and test 8.9628. With this second key support broken, the movement to the downside will probably continue to 8.9497.