background image background image background image

Technical Update - EURSEK testing key support. EURNOK uptrend running out of steam? NOKSEK pausing downtrend

Forex 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  EURSEK sell-off testing key support at 11.40. Bounce back or confirmation of downtrend?
EURNOK uptrend running out of steam testing key support. Will uptrend resume or a downtrtend be initiated?
NOKSEK in downtrend testing key support in medium-term downtrend


EURSEK is testing key strong support around 11.40 and the 55 Weekly Moving Average.

Weekly RSI is still above 40 i.e., showing positive sentiment despite the fact EURSEK has formed lower lows and lower highs meaning the pair is in a downtrend.
However, to confirm and fuel another sell-off lower RSI needs to close below 40 and EURSEK to close the week below 11.40

If that scenario plays out EURSEK could be hit with a sell-off down to 11.18 but potentially down to around 11.00

If sellers are failing to push EURSEK to close below 11.40 the pair could bounce back and resume uptrend

Daily RSI is currently exhibiting Divergence indicating the past couple of weeks sell-off is exhausting and EURSEK could bounce back possibly resuming uptrend.
For EURSEK to confirm an uptrend and to confirm the medium-term uptrend has resumed, a close above 11.85 is needed

If EURSEK is bouncing off 11.40 and the4 weekly RSI is closing above its falling trendline it could be an indication of uptrend to resume, despite there has been Divergence since mid-2022

eursek d 2311
Source all charts and data: Saxo Group
eursek w 2311

EURNOK uptrend seems to be running out of steam shy of May peak at 12.07 currently testing short-term support at around 11.63 and the 55 DMA. A daily close below could initiate a sell-off down to 11.25-11.10 key strong support.

Both daily and weekly RSI is still in positive sentiment but a close below 11.63 is likely to push daily RSI below 40 threshold i.e., in negative sentiment.

If EURNOK is closing back above 12.00 uptrend will resume with potential to around 12.50

eurnok d 2311
eurnok w 2311

NOKSEK has reached the 0.786 retracement at around 0.9670 of the May-August 2022 bull trend. If the pair is closing back above 0.9830 a bounce up to the 0.382 retracement at 0.9448 would be likely  

A close below 0.9640 is likely to extend the down trend to May 2022 lows around 0.95-0.9450uptrend running out of steam. NOKSEK  

Medium-term NOKSEK seems to be trading in a wide falling channel i.e., NOKSEK is in bearish trend and currently stands at a key level.  

Strong support at around 0.95
noksek d 2311
noksek w 2311

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.