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NORDIC FX, NOK, SEK WEEKLY OUTLOOK
- USD/NOK, USD/NOK aiming to break above upper ranges
- Fundamental triggers this week may propel pairs higher
- Breaks above key resistance may reinforce bullish sentiment
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As outlined in last
week’s technical outlook, USDNOK and
USDSEK’s long term outlook suggests an upward bias for the pair’s movement. In the short term, however, both pairs may seem some
minor congestion and possible consolidation before they resume their upward trajectory. Fundamental factors this week may be a key catalyst for
breaking above the upper lip of each pair’s respective range.
USDSEK TECHNICAL ANALYSIS
Since last week, the Swedish Krona has been outperforming relative to the US Dollar, though
this appears to be more of a result of the latter’s overall weakness than a broader strengthening of SEK. The pair is expected to
trade between the 9.2273-9.3110 (red and yellow line) range with some possible friction in soft-inter range resistance
levels.
USDSEK – Daily Chart
Breaking above the upper lip would send a bullish signal to investors and could result in
the pair trading higher if the breakthrough is met with follow-through. Following the March 7 ECB meeting, the pair jumped over one
percent and reached a 17-year high before retreating. Despite the turn lower, it left a checkpoint and set the stage for what other
potential re-entries will have to overcome to confirm uptrend resumption.
If you’re interested in trading the Swedish Krona and Norwegian Krone you may follow me on Twitter
@ZabelinDimitri.
USDNOK TECHNICAL ANALYSIS
Since last week, USDNOK has fallen over one percent as crude oil prices climbed and overall
US Dollar weakness was seen across the board. The pair is now stuck in what appears to be range between 8.6323-8.5956 (red lines)
with possible inter-range resistance at 8.5956 (yellow dotted line). Despite the retreat, fundamental themes and triggers appear to
be still in play and are set to continue pushing the pair higher.
USDNOK – Daily Chart
If USDNOK breaks and holds above the upper lip (8.6323), it could
signal a reinforcement of bullish sentiment toward the pair and mark a significant price move. Since December, the pair has broken
above this key psychological barrier but ultimately always retreated – albeit, with some hesitancy. The overall trend for the
pair’s movement and several efforts to breach reinforce the pair’s stubborn persistence to climb higher.
SWEDISH KRONA, NORWEGIAN KRONE TRADING RESOURCES
--- Written by Dimitri Zabelin, Jr Currency Analyst for
DailyFX.com
To contact Dimitri, use the
comments section below or @ZabelinDimitrion Twitter
original source
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