BUZZ-COMMENT-Swedish Crown's wind of change: opportunity or setback?

Feb 27 (Reuters) - A change in EUR/SEK direction is underway and while the technical picture hints at a trend reversal there remain arguments for a resumption of the Swedish crown rally.

For much of February EUR/SEK has been pushed lower but recent sessions have seen loss consolidation turn into gains and potential for a bigger move higher.

The fundamental backdrop still supports the SEK versus the euro and any technical reversal in EUR/SEK direction might just offer better entry levels for those looking to join the underlying trend.

The daily chart has been displaying oversold values since February 6 and despite the recent EUR/SEK rally there remains scope for further short unwinding.

Candlestick reversal signals, albeit within tight ranges, are showing up on the daily chart. Alternating hammer candles and bullish engulfing lines warn that the February 3-21 bear trend may have run its course.

Another hammer type candle is forming today, and the market is attempting to push clear above the 10-day moving average. The average, at 11.1780, has defined the February bear trend and a close above line could be significant.

Fibonacci retracement levels taken off the 11.5160-11.1190 February 3-21 fall provide pullback targets. A minimum correction level, 23.6%, is at 11.2127 and the key 50% retracement is at 11.3175.

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