EUR/SEK to extend weakness to 8.7109 and 8.7006, as the sustained EUR downtrend pushes into fresh 10-month lows below 8.7838. A daily close below 8.7838 would upgrade the eight-week bear wave off the 9.2940 lower high, bringing the focus onto a 1.618 Fibonacci extension target at 8.7109 and leaving the important February 2011 reaction low at 8.7006 vulnerable. Corrective EUR gains will struggle to regain ground above 8.7920, and only above pivotal resistance at 8.8335 would question the bearish outlook. EUR/SEK trades at 8.7645.
EasyForexNews Research Team