Trading this year in NOKSEK has given some mixed signals after last year’s clear and aggressive upside.
Profit taking from November’s peak above 1.1000 led first to a negative cross in our RSI indicator during December then followed in January with a cross of it’s 21 week offset moving average. But that confirming move move proved a temporary one and January/February was dominated by a gradual rise in NOKSEK .
However last week’s strong decline signalled a significant lower high which has been followed with further selling pressure this week.
Both EURSEK & EURNOK found buyers at the 13 day moving average but the aggressive buying in EURNOK created a Bullish Morning Star pattern on weekly charts. This has led to NOKSEK testing the key 21 week line again. This point is still a little way above a trend of higher weekly lows but with RSI still negative from December we’re looking for a close below the average, currently at 1.0591, to confirm a bearish bias for the medium term with downside objectives to include 1.0422 and 1.0244.
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