Overall, NOK/SEK is trading above a medium-term tentative upside support line drawn from the low of July 20th. From around mid-November, the pair seems to be forming an inverted head-and-shoulders pattern, with a “neckline” near the 1.0193 level, which is marked by the highest point of November. Although there is a good chance we might see further upside, we would prefer to wait for a break above that “neckline” first.
If, eventually, that pop happens and NOK/SEK pushes through the 1.0193 barrier, this will confirm a forthcoming higher high, possibly inviting more buyers into the game. The rate might then travel to the 1.0245 obstacle, a break of which may lead to a test of the 1.0326 hurdle, marked by the high of October 26th. Slightly above it lies another potential resistance target, at 1.0350, which is the highest point of October.
The RSI and the MACD are both pointing higher. Additionally, the RSI is above 50 and the MACD had just popped above zero and the trigger line. The two oscillators are showing positive price momentum, which supports the idea discussed above.
Alternatively, if the rate falls back below the 1.0125 hurdle, this may result in a larger correction lower. NOK/SEK might drift to the 1.0030 territory, marked near the lows of December 17th and 20th. If the slide continues, the pair could end up moving to the next support area, at 0.9988, marked by the low of December 15th, or to the aforementioned upside line.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.02% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.