Forex Market: EUR/SEK daily trading forecast

Yesterday’s trade saw EUR/SEK within the range of 9.2962-9.3687. The pair closed at 9.3306, gaining 0.21% on a daily basis.

At 7:32 GMT today EUR/SEK was down 0.14% for the day to trade at 9.3269. The pair touched a daily low at 9.3224 at 7:20 GMT.

Fundamentals

Sweden

Balance of trade

Swedens balance of trade probably produced a surplus of SEK 1.3 billion in December, according to market expectations, after in November a deficit of SEK 0.7 billion was recorded. In November a year earlier the country had a surplus at the amount of SEK 3.8 billion. Total exports were at the amount of SEK 94.9 billion in November, or unchanged on annual basis, while total imports were valued at SEK 95.6 billion, or a 5% increase from a year ago. Trade with countries outside the European Union resulted in a surplus of SEK 10.5 billion, while the EU trade produced a deficit of SEK 11.2 billion.

The nations major exports include machinery, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals, while major imports are machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel.

The trade balance, as an indicator, measures the difference in value between the country’s exported and imported goods during the reported period. It reflects the net export of goods, or one of the components to form the Gross Domestic Product. Generally speaking, exports reflect economic growth, while imports indicate domestic demand.

In case the country reported a larger trade balance surplus than anticipated, this would have a bullish effect on the krone. Statistics Sweden is expected to release the official trade data at 8:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 9.3318. In case EUR/SEK manages to breach the first resistance level at 9.3675, it will probably continue up to test 9.4043. In case the second key resistance is broken, the pair will probably attempt to advance to 9.4400.

If EUR/SEK manages to breach the first key support at 9.2950, it will probably continue to slide and test 9.2593. With this second key support broken, the movement to the downside will probably continue to 9.2225.

The mid-Pivot levels for today are as follows: M1 – 9.2409, M2 – 9.2772, M3 – 9.3134, M4 – 9.3497, M5 – 9.3859, M6 – 9.4222.

In weekly terms, the central pivot point is at 9.3810. The three key resistance levels are as follows: R1 – 9.4716, R2 – 9.5988, R3 – 9.6894. The three key support levels are: S1 – 9.2538, S2 – 9.1632, S3 – 9.0360.