Break Above 8.85 Encourages EUR/SEK Inverse H&S Prospects
Eur/SekThe cross has once again found some formidable support on dips and could be in the process of carving an inverse H&S pattern on the daily chart. Look for a daily close back above the neckline by 8.90 to confirm outlook and open an accelerations of gains back towards the 9.10 area over the coming days.
Usd/SekThe market looks to be in the process of a major structural shift, with the latest multi-day consolidation broken to confirm the formation of a higher low and next major upside extension beyond 7.00. Recent setbacks have been well supported by previous resistance at 6.30 to further confirm constructive outlook and expose a retest of the critical November 2010 highs by 7.07 further up. Above 7.07 open next upside extension towards 7.50 further up, while any interday declines should find renewed bids ahead of 6.50.
Usd/Nok The market looks to be in the process of a major structural shift, with the latest multi-day consolidation broken to confirm the formation of a higher low and next major upside extension beyond 6.00. Recent setbacks have been well supported by previous resistance at 5.40 to further confirm constructive outlook and expose a sustained break of the 6.00 handle. Next key resistance at 6.25 now in focus, while setbacks should be well supported ahead of 5.70.
Eur/NokWe believe are finally starting to see the formation of a potential base in the cross following the latest sharp bounce out from some very solid support in the 7.50 area. From here, look for an acceleration of gains through the multi-week range highs by 7.95, with further acceleration expected on a break above 8.00. Only back below 7.50 concerns.
--- Written by Joel Kruger, Technical Currency Strategist
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