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USD/NOK Poised for Bullish Reversal; Look to Buy and Hold for A Bit
Written by article default Wednesday, 04 May 2011 10:17
Eur/SekThe market recovery out from 8.70 continues and we look for a fresh higher low to now be in place at 8.80 ahead of the next upside extension towards the 9.30 area further up. Weekly studies are looking even more constructive potentially with the formation of a major base and the clear break back above the 9.00 handle has triggered the formation of an inverse head & shoulders base. Ultimately, only back below 8.80 would give reason for concern.
Usd/SekRemains under some intense pressure with the market trading at fresh yearly and multi-week lows towards critical psychological barriers by the 6 handle. At this point, we can not rule out the possibility for additional sustained weakness below 6.00 to test the multi-year lows by 5.80 from 2009, but it will take a weekly close below the psychological barrier to get us really thinking about that 5.80 retest. Otherwise, any signs of a hold above 6.00 could warn of the formation of a potential base and bullish reversal. A daily close back above 6.07 on Wednesday will do a good job of confirming short-term reversal.
Usd/Nok Monday’s doji close and Tuesday’s bullish reversal day now suggest that a meaningful low could be in place by 5.20, and with daily studies turning up fro oversold, there is plenty of room for additional upside from here. Look for a test of 5,40 over the coming sessions with a break above to accelerate.
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. The latest break back above 7.80 confirms and exposes 8.10 further up. Only a weekly close back below 7.70 ultimately negates recovery, while intraday setbacks should be well supported above 7.75 on a close basis.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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