Gbp/Nok recovery rally has pulled back since reaching 9.53 in the previous week, but our outlook remains constructive, and a higher low is now sought out above 9.00, ideally by 9.23, ahead of the next upside extension beyond 9.53.

OVERVIEW – The lack of any data on the domestic front over the past couple of days have left the regional currencies trading off of broader global macro themes and price action.

Eur/Sek pullbacks should be well propped ahead of 10.15 with the market in the process of carving a meaningful base on the daily chart. Latest price action reaffirms outlook with the market finally taking out the multi-day consolidation highs by 10.53 to now expose 10.60-70 further up.

Nok/Jpy has been well confined to a very choppy range trade over the past several weeks, largely defined between 15.00 and 16.50. The latest pullbacks have once again been well supported in the 15.00 area ahead of a bounce back into the mid-range. Look for the market to now be well capped ahead of 16.00, in favor of a retest on 15.00. 

Usd/Sek our view is still constructive at current levels despite the latest setbacks and favors USD appreciation over the coming weeks.  We contend the market is attempting to carve out a major base rather than in the process of some bearish consolidation. The recent break back above 7.10 confirms bias and exposes 7.40-50 further up. Any setbacks are expected to be well supported ahead of 6.75, while back above 7.20 accelerates.

Usd/Nok even with the latest pullbacks, we still retain a constructive outlook for the pair with the market looking to carve out a major bottom on the daily chart.  We do not anticipate a retest of the recent 5.50 lows and instead favor a bounce at current levels back towards neckline resistance at 5.85, a break of which will trigger the double bottom formation.

OVERVIEW – We are now in the final weeks of trade for 2009, and as the decade comes to a close, we are starting to see the typical violent intraday end of year price action. The Greenback has come back into favor over the past few weeks, and following the Fed on Wednesday, has now managed to accelerate gains across the board.

Usd/Nok double bottom has now been triggered and the break above the neckline is significant as it confirms that a major bottom is now in place. The push above 5.85 now opens a measured move extension back towards the 6.10-15 area over the coming days. Look for any dips to be well supported now ahead of 5.70.