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Scandi Rallies Continue to Be Very Well Offered to Warn of More Weakness
Written by article default Friday, 01 July 2011 09:45
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 9.30-50 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. Inter-day setbacks should now be well supported ahead of 9.00 while ultimately only back below 8.80 would give reason for concern.
Usd/SekThe market looks to be in the process of a major structural shift, with the latest break back above the 6.40 area confirming a fresh higher low by 6.15 and opening the door for the current upside extension which now shows room to extend towards 7.00 over the coming days. In the interim, any setbacks are now expected to be well supported above 6.25 on a daily close basis. The market has not traded above the 200-Day SMA since August 2010 and a sustained break back above 6.50 where the longer-term SMA currently comes in will help to reaffirm bias and strengthen constructive outlook.
Usd/Nok Setbacks have stalled out well ahead of the recent trend lows by 5.20 and the market looks to be attempting to carve a fresh higher low by 5.32 to be confirmed on an eventual break back above the recent range highs at 5.62. Our outlook from here remains constructive with the market potentially in the process of carving a more meaningful longer-term base. Ultimately, only a daily close back below 5.30 would negate.
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 weekly close basis.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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