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Usd/Sek: Higher Low Sought Ahead of Fresh Upside Extension
Written by article default Monday, 25 July 2011 08:18
Eur/SekThe market recovery out from 8.70 remains intact despite the latest minor pullback and we look for a fresh higher low above 9.00 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. Ultimately, only back below 9.00 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 6.25 on a daily close basis. The market has also 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 The latest successful defense down by 5.30 and subsequent break back above the 100-Day SMA reaffirms our constructive outlook for the pair and a fresh upside extension is now projected over the coming days back above the 200-Day SMA by 5.65 and towards the 5.85-90 area further up. This market has also not traded above the 200-Day SMA since 2010 and the push back above the longer-term SMA will strengthen the recovery outlook. Only below 5.30 negates and gives reason for pause.
Eur/NokWe believe are finally starting to see the formation of a potential base in the cross following the latest bounce out from some very solid support in the 7.70 area. From here, look for an acceleration of gains back towards the multi-week range highs by 7.95, with further acceleration expected on a break above 8.00.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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