EUR/SEK extends slide and hits six-week lows under 10.70

• Swedish krona rises further on Tuesday, following Riksbank’s decision to keep policy on hold.
• EUR/SEK heads for lowest daily close since March 6.

The EUR/SEK pair dropped further during the American session, falling under 10.7000 for the first time in six weeks. As of writing, the pair trades at 10.6891, the lowest intraday level since March 13.

The Swedish krona gained momentum after Sweden’s central bank kept its key interest rate unchanged at zero. The Riksbank left the door open to negative rates taking into account uncertainty around the coronavirus. It announced it plans to continue buying assets until September.

Also, a lower than expected decline in retail sales in Sweden in March (-1.8% versus -3%) contribute to strengthening the krone. Among global currencies, it is among the top performers on Tuesday after the Brazilian real and the Mexican peso.

EUR/SEK Technical levels

The pair is testing levels under the 10.6900 support zone, below the next obstacle emerges at 10.6480 followed by 10.6100. On the upside, 10.7460 is the immediate resistance and then 10.8200.