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DailyFX Report July 7
Written by article default Thursday, 07 July 2011 08:14
Eur/SekThe market recovery out from 8.70 remains intact despite the latest minor pullback 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 exposing eventual gains towards 7.00 over the coming days. In the interim, any setbacks are now expected to be well supported above 6.15 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 5.30 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. Look for current setbacks to be well supported ahead of 7.70 in favor of a bounce off of the multi-week range lows and acceleration towards 7.90 further up. Ultimately only a weekly close below 7.70 would negate outlook.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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