EUR/SEK rally expected to continue – Danske Bank

Pernille Henneberg, Senior Analyst at Danske Bank, sees the rally in EUR/SEK poised to continue albeit it has moved into overbought territory.

Key Quotes

“In the Scandies, we have raised our EUR/SEK forecast on the back of the strong EUR/SEK rally”.

“Given the break of key resistance levels, we would not rule out that it has further to run. However, we also note that the pair is looking increasingly overbought technically and relative to our short-term financial models”.

“We now target EUR/SEK at 9.70 (9.40) in 1M, 9.50 (9.30) in 3M, 9.40 (9.30) in 6M and 9.20 (9.10) in 12M”.