NOK/SEK continues to slowly grind higher, while trading above a short-term tentative upside support line taken from the low of August 20th. Today, the pair went for a higher high, overcoming the highest point of last week, at 0.9990. If the rate is able to stay somewhere above the previously mentioned upside line, the outlook could remain positive, at least in the near-term.
As mentioned above, if the aforementioned upside line keeps providing strong support, NOK/SEK could travel to the 1.0033 obstacle, or to the 1.0065 zone, marked by the high of May 20th. Initially, the rate might stall there for a bit, but if the buying interest remains strong, the rate may continue with its journey north, potentially aiming for the 1.0127 level, which is the high of May 18th.
The RSI and the MACD are both pointing higher. In addition to that, the RSI sits above 50 and the MACD continues to run well above zero and slightly above the trigger line. The two oscillators show positive price momentum, which supports the idea discussed above.
On the downside, if the rate breaks the previously mentioned upside line and then falls below the 0.9900 hurdle, marked by an intraday swing low of September 9th, that could invite a few extra sellers into the arena, as such a move might lead to a change in the direction of the current short-term trend. NOK/SEK may drift to the current lowest point of September, at 0.9836, where a temporary hold-up might occur. That said, if the bulls are still nowhere to be found, the bears could drag the rate even lower, initially targeting the 0.9812 obstacle, a break of which may lead to a test of the 0.9753 area, marked by the low of August 23rd.
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