There is a trend that is regularly going on: EURSEK. The weakness of the SEK against the EUR goes on in fact from March 2012 led by the double support of the 200-day moving average combined with the up trend line that connects the primary low.
The market is testing again area 9.00 before attempting to assault area 9.12, where there is a strong resistance. The movement was triggered also by the statements of the nearby Norwegian central bank which has expressed a concern about the current strength of the NOK while the market is properly moving in line with our forecasts made last week on these pages.
Back to EURSEK we are facing a technical crossroads. The exit from the rectangle (above 9.12) has a potential bullish scenario at 9.30 that would move again the cross in the upper part of the ascending channel.
If this scenario were to occur by the end of the month then it will be a wonderful opportunity for short-term traders who want to try the reverse. EURSEK relies on a decidedly negative bearish seasonality in the month of July. In the past 9 years the cross has always fallen with a percentage negative change of -1.6%.
The market is testing again area 9.00 before attempting to assault area 9.12, where there is a strong resistance. The movement was triggered also by the statements of the nearby Norwegian central bank which has expressed a concern about the current strength of the NOK while the market is properly moving in line with our forecasts made last week on these pages.
Back to EURSEK we are facing a technical crossroads. The exit from the rectangle (above 9.12) has a potential bullish scenario at 9.30 that would move again the cross in the upper part of the ascending channel.
If this scenario were to occur by the end of the month then it will be a wonderful opportunity for short-term traders who want to try the reverse. EURSEK relies on a decidedly negative bearish seasonality in the month of July. In the past 9 years the cross has always fallen with a percentage negative change of -1.6%.
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