Tuesday, 2022-10-04, 1:54 AM
Welcome Guest | RSS
Site menu
Catalog categories
Brokers [2]
Software [14]
Forex for Beginners [86]
Trading Strategy [55]
Trading Systems [10]
Forex Psychology [15]
Forex Signals [11]
Currency trading [50]
Forecast [39]
Funny Forex [2]
Technical Analysis [84]
Other [5]
Forex Technical and Fundamental Forecasts for October 2009 [7]
Forex Technical and Fundamental Forecasts for November 2009 [2]
Scandi daily [20]
Main » Articles » Scandi daily

Scandi Daily 12.11
OVERVIEW – Price action in the regional currencies over the past 24 hours has been far from impressive given the latest inflation data and resurgence in risk appetite. Inflation data in both Norway and Sweden came in slightly higher than expected on Thursday, while broad based sentiment improved, helping to prop global equity and commodity prices. However, the NOK has actually been underperforming on Friday, while the SEK sits in the middle of the pack. Normally, a firmer inflation print and healthy risk appetite would translate into outperformance in these currencies and we are therefore somewhat surprised with the relative weakness. It is worth noting however, that despite the rebound in commodities, oil has been lagging, which could explain the diminished demand for the correlated NOK.  Nevertheless, our technical studies have been warning of weakness in the Nordics over the medium-term and we continue to see these currencies underperforming over the coming weeks. A recent study that connects movement of hedge fund money with carry performance and risk appetite does not bode well for the Scandis, with the study now warning of a pullback in carry currencies, commodities and global equities over the medium-term.

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.

Eur/Nok price action confirming our constructive outlook and we favor of a bullish resumption back above key short-term resistance at 8.56 over the coming days.  A closer look at the daily chart reveals the potential formation of a major bottom. Ultimately, only below 8.24 negates.

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.

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.

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. Pullbacks have once again been well supported in the 15.00 area ahead of the latest bounce back into the range. From here, we recommend continuing to play the range high-lows.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
To contact the author of this report, e-mail
jskruger@fxcm.com and you will be added to the "distribution" list.
Category: Scandi daily | Added by: forex-market (2009-12-11)
Views: 347
Total comments: 0
Only registered users can add comments.
[ Registration | Login ]
Custom Search
Login form
Site friends
Copyright MyCorp © 2022