Scandi Rallies Classified as Corrective; Looking to Sell Against USD and Euro
Eur/Sek Overall, we continue to project significant upside in this cross rate and see the market in the process of carving a material base that will ultimately open moves potentially back towards the 9.75 area over the coming months. A major double bottom now looks to be carving by the 8.75 area, and a break above the 9.35 neckline will indeed confirm our bullish outlook.
Usd/Sek An inverse head & shoulders pattern has triggered following the break above 7.00, which now opens the door for more significant gains towards 8.00 further up. However, daily studies are unwinding from severely overbought territory, and as such, look for opportunities to buy into pullbacks towards 6.75.
Usd/Nok Although the market has been confined to a multi-day consolidation, dips have been very well supported and we continue to see evidence of an eventual break of this range to the upside. Look for the latest push back above 5.85 to confirm bias and accelerate gains towards 6.10. Only back under 5.65 would delay and give reason for concern.
Eur/NokLooks to be finally attempting to establish some form of a base after being very well offered over the past several weeks. The latest break back above 7.60 confirms outlook and we now expect to see an acceleration of gains towards 7.65 over the coming days.
--- Written by Joel Kruger, Technical Currency Strategist
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