Comment: Deadly dull for much of 2008 and then we see the biggest ever gyrations between these two Scandinavian currencies since the Euro’s introduction. This year’s retreat from an all-time high at 1.3200 ended at the 61% Fibonacci retracement with a small ‘double bottom’. Bullish momentum has increased over the last three weeks to almost the highest on record, allowing prices to close above a good-sized weekly Ichimoku ‘cloud’. A monthly close above 1.2500 should send the Norwegian krone flying higher to decent resistance at 1.2600 and then the psychological 1.3000. Medium term there is a good chance that it will trade at new record highs towards year-end, a final (and possibly very dramatic) leg of the ultra-long term bull market that started in 1992.
A weekly close below 1.2000 postpones any rally, forcing us to review.
