News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • When markets are falling, how can you short sell? Learn more here:https://t.co/K4EFd6A6xd https://t.co/dCArCZmIAk
  • The US Dollar is on the defensive against most ASEAN currencies, with key breakouts in USD/SGD and USD/IDR. USD/THB upside momentum is fading as USD/PHP consolidates. Get your market updates from @ddubrovskyFX here:https://t.co/zQkUPpRr12 https://t.co/YTmJboqdMn
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.22% Silver: -0.74% Oil - US Crude: -0.79% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/CBrOIlwIwi
  • Earnings are starting to lose their default bullish charge after the falter from Facebook and unimpressive afterhours Google response. Still AMZN and AAPL ahead Thursday, but for now focusing on $USDCAD with BOC: https://www.dailyfx.com/forex/video/daily_news_report/2021/10/27/Earnings-Support-for-Bull-Trend-Wavers-as-Fundamentals-Broaden-Attention-to-the-Likes-of-USDCAD-.html https://t.co/6TpIpyWVlc
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.31% 🇯🇵JPY: 0.04% 🇬🇧GBP: 0.04% 🇨🇭CHF: 0.01% 🇨🇦CAD: -0.02% 🇳🇿NZD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kr4trHaFbD
  • Possible way to finance the Biden's Build Back Better agenda https://t.co/QP0UW6Pbmw
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.25%, while traders in Wall Street are at opposite extremes with 76.29%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/6RuOSjQNNK
  • The US Dollar might be stabilizing against ASEAN currencies as inflationary woes resurface ahead of GDP and PCE data. Amazon, Apple and Facebook earnings may also drive sentiment ahead. Get your market update from @ddubrovskyFX here:https://t.co/tY5dOmDIWS https://t.co/QFaXQHkFJ8
  • 🇨🇳 Industrial Profits (YTD) YoY (SEP) Actual: 44.7% Previous: 49.5% https://www.dailyfx.com/economic-calendar#2021-10-27
  • Heads Up:🇨🇳 Industrial Profits (YTD) YoY (SEP) due at 01:30 GMT (15min) Previous: 49.5% https://www.dailyfx.com/economic-calendar#2021-10-27
Brexit Vote May Cause Significant Volatility in SEK, NOK - Foggy Outlook

Brexit Vote May Cause Significant Volatility in SEK, NOK - Foggy Outlook

Dimitri Zabelin, Analyst

NOK, SEK TALKING POINTS – WEEKLY TECHNICAL FORECAST

  • USD/SEK re-entered 9.3110-9.4066 range
  • Is USD/NOK flirting with 8.6323 support?
  • Brexit vote volatility makes outlook foggy

See our free guide to learn how to use economic news in your trading strategy!

USD/SEK TECHNICAL ANALYSIS

After closing above a 17-year high at 9.4494 with the fingertips at 9.5003, USD/SEK subsequently had some pullback and re-entered a trading range between 9.3110-9.4066. The frequently-tested rising January support line might provide an ample foundation for the pair to continue its climb should prices fall in the interim. In such an outcome, the pair may struggle to continue along the steep incline as the upper lip of the resistance range holds once again.

USD/SEK – Daily Chart

Chart Showing USD/SEK

Zooming out to a weekly chart, the pair appears to be resuming what looks like a broad uptrend starting in January 2018. Between August 2018 and January 2019, the pair traded sideways in a range of 8.9094-9.2027 before it resumed its steep incline.

USD/SEK Weekly Chart

Chart Showing USD/SEK

USD/NOK TECHNICAL ANALYSIS

USD/NOK also had a meteoric rise with the height at 8.8197 and a close at 8.7995, the highest since December 2018. Around that same time, a resistance range appeared to have been formed between 8.7881-8.8244. The pair attempted to breach the lower bound on several occasions and repeated efforts left the pair exhausted as it stalled and turned lower.

This also appears to have been another attempt for the pair to test the rising trend line from January 2019. After the last failure in February, traders may have simply thrown in the towel right around the same time the pair failed to close above 8.7881.

USD/NOK – Four-Hour Chart

Chart Showing USD/NOK

A weekly chart reveals how the pair broke a steep trading channel in December and traded lower for a while. However, now the pair appears to be attempting to regroup and continue the charge upward. The boundary between 8.6323-8.7881 may keep the pair in check for the next few months.

USD/NOK – Weekly Chart

Chart Showing USD/NOK

Looking ahead, later today the UK Parliament will be voting on the Prime Minister’s Brexit deal. Preliminary reports and commentary from her Deputy, David Lidington, seemed to be welcomed by the markets. GBP/USD rallied after he reported that the government secured "improved" changes to her divorce deal, perhaps increasing the odds of it passing. However, given how sporadic and volatile Brexit developments are, it is equally likely that whatever occurs it will produce an equally market-moving reaction.

To understand why the Swedish Krona and Norwegian Krone are particularly vulnerable to these kinds of developments, read my weekly Nordic fundamental forecast.

SWEDISH KRONA, NORWEGIAN KRONE TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES