Recent moves by the Swedish Riksbank and the European Central Bank are likely to send EURSEK back down towards the recent trading range, says Saxo Bank's John Hardy, who explains how he's trading the pair.

According to Hardy, the latest Riksbank meeting saw the bank take a bit of breather after a torrid pace of easing over the last several meetings. That shift could be SEK supportive until through the next few economic data points.  

Hardy says that the European Central Bank’s Mario Draghi at the same time came out clearly leaning on the sharply stronger euro of late, which could weigh on the euro, especially as it appears risk sentiment may be stabilising again, as the recent turmoil was likely a key factor in the EUR’s rise. 

For more details on the trade, make sure to check out Hardy's article #SaxoStrats: EURSEK downside beckons on valuation, Riksbank