NORDIC FX, NOK, SEK WEEKLY OUTLOOK
- USDNOK, USDSEK uptrends remain strong
- Primary factor appears to be US Dollar rise
- Both pairs hovering over decade-level highs
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USDSEK Technical Analysis
USDSEK may have found new support at 9.5323-9.5767 (yellow dotted lines). Since May, it was acting as a congestive area and occasionally resistance. However, thanks in large part due to a surge in the US Dollar and a weakening demand for Nordic FX, the pair have remarkably recovered and are looking to continue along the 20-month rising support channel.
USDSEK – Daily Chart
USDSEK chart created using TradingView
Zooming out to a weekly chart shows how the pair was steadily climbing along the red parallel channel and briefly broke through it for almost two months. But an uptick in demand for the US Dollar has caused the pair to surge and resume their previous uptrend. This week, the pair’s ascension will likely continue and may even get a boost if risk aversion places a premium on liquidity and draws traders to the haven-linked US Dollar.
USDSEK – Weekly Chart
USDSEK chart created using TradingView
USDNOK Technical Analysis
USDNOK’s uptrend will likely continue this week and may be boosted by similar factors pushing USDSEK higher. The former pair is comfortably sitting above the upper crust of a critical rising support channel (red parallel lines) and is hovering at over decade-level highs.
USDNOK – Daily Chart
USDNOK chart created using TradingView
Zooming out to a weekly chart shows how USDNOK’s current exchange rate is at its level since 2002. Even at the height of the financial crisis when the US Dollar rallied, the pair’s position is over 20 percent higher than it was in 2008. Looking ahead, it is not outlandish to suggest the pair could reach 9.1475 which would mark an 18-year high.
USDNOK – Daily Chart
USDNOK chart created using TradingView
SWEDISH KRONA, NORWEGIAN KRONE TRADING RESOURCES
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--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com
To contact Dimitri, use the comments section below or @ZabelinDimitri on Twitter
