Technical Update - EURSEK and EURNOK facing correction but higher levels in the cards Technical Update - EURSEK and EURNOK facing correction but higher levels in the cards Technical Update - EURSEK and EURNOK facing correction but higher levels in the cards

Technical Update - EURSEK and EURNOK facing correction but higher levels in the cards

Forex 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

Summary:  EURSEK rejected at previous peak and is facing correction. But further SEK weakness could be seen
EURNOK bullish break out came to a halt at 11.15 but likely to move higher after a minor correction


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EURSEK is being rejected around previous peaks around 11.40. However, there could be more upside in EURSEK this time around. Monthly RSI is still showing positive sentiment without divergence indicating higher EURSEK levels.
However, a correction from following the rejection is in the cards. RSI is forming a rising wedge and a bearish break out could see EURSEK drop to the 0.382 retracement at around 10.85 but a correction down to 0.618 retracement at around 10.48 should not be ruled out.
If EURSEK breaks above 11.50 a move to 1.382 projection of the 2020-2021 correction at around 12.05 could be seen.

EURSEK is trading in a rising channel (weekly chart) a bearish break out could initiate the correction that could push EURSEK down to support at around 10.75-10.50.
Divergence in RSI support the correction scenario to play out

Source all charts and data: Saxo Group

EURNOK is dancing around the 0.382 retracement of the 2020-2022 bear trend around 10.90. EURNOK is in an uptrend on medium- to longer-term (weekly and monthly chart) supported by positive RSI sentiment and no divergence

Weekly chart EURNOK has broken resistance at around 10.67 and seems set for higher levels. Next resistance at around 11.15 is currently being tested and a close above could see EURNOK propelling to strong resistance at around 11.75-11.85 i.e., around the 0.618 retracement of the 2020-2022 bear move

For EURNOK to reverse the uptrend a close below 10.15.

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