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Scandis Remain Very Well Bid Across the Board; No Signs of Weakness Yet
Written by article default Tuesday, 01 March 2011 08:44
Eur/SekThe market could finally be in the process of carving a material base with setbacks being very well supported by 8.70. However, given the intensity of the downtrend, we would need to see a break and close back above 8.85 to officially confirm short-term bullish reversal and open the door for a more significant recovery towards 9.00 further up. A close back below 8.70 negates and opens the door for a fresh downside extension.
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. Back below 7.70 negates and opens the door for deeper setbacks.
Usd/SekRemains under some intense pressure with the market trading by 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.
Usd/Nok remains under intense pressure with the market now looking to establish below critical medium-term support at 5.60. A sustained move below 5.60 would then expose a more significant decline back towards 5.50, while a break back above 5.70 would now be required to alleviate downside pressures.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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