USD/NOK Starting to Carve Out Short-Term Base; Could Accelerate Higher
Eur/SekThe latest break and close back above 8.85 is a significant short-term development as it likely signals a base for now and triggers a double bottom formation that projects fresh upside towards the 9.00 handle over the coming sessions. This market has been very well offered of late and any upside moves towards 9.00 should be welcome as a healthy corrective bounce.
Eur/NokWe are finally starting to see the formation of a potential base in the cross after the market has once again stalling out by the 7.70 handle. Look for confirmation on a break and close back above 7.80, with the move likely to force an acceleration of gains towards more critical resistance at 7.97 further up. Only a weekly close back below 7.70 negates and opens the door for deeper setbacks.
Usd/SekRemains under some intense pressure with the market trading at fresh yearly and multi-week lows by 6.30. However, with daily studies looking stretched, there is the risk for some corrective upside ahead. A bullish reversal week would definitely help the USD’s cause here and we would need to see a break above 6.55 to ultimately encourage these reversal prospects. A weekly close below 6.30 would be discouraging for reversal prospects and expose 6.20 further down.
Usd/Nok Remains under intense pressure with the market now looking to establish below critical medium-term support at 5.55. A sustained move below 5.55 would exposes a more significant decline back towards 5.50, while a break back above 5.62 would now be required to alleviate downside pressures. However, daily studies are now oversold and given the intensity of the latest drop, we feel there is a good risk for a bullish reversal from here.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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