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22 Jun 2015
NOK/SEK could be headed to sub-parity levels – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the likeliness of the Nordic cross visiting levels below parity in the medium to long term.
Key Quotes
“NOKSEK remains under pressure, even if that is not too obvious from the technical picture, which suggests little change in the cross overall on the week”.
“The NOK has slipped a little on net, however, and that weakness is enough to keep trend momentum studies nicely aligned in strongly NOK-negative territory across a range of timeframes”.
“That should keep the cross heading towards key support (double top trigger) at 1.0360 and maintains the risk of sub-par levels in the next few months”.
“NOKSEK troughed near 0.98 late last year and, while the technical implications of a break under 1.0360 would suggest quite significant downside risks over the next 6-12 months, the 0.98/1.00 zone has been an area of major, long-term support for the cross since the 1990s”.
Key Quotes
“NOKSEK remains under pressure, even if that is not too obvious from the technical picture, which suggests little change in the cross overall on the week”.
“The NOK has slipped a little on net, however, and that weakness is enough to keep trend momentum studies nicely aligned in strongly NOK-negative territory across a range of timeframes”.
“That should keep the cross heading towards key support (double top trigger) at 1.0360 and maintains the risk of sub-par levels in the next few months”.
“NOKSEK troughed near 0.98 late last year and, while the technical implications of a break under 1.0360 would suggest quite significant downside risks over the next 6-12 months, the 0.98/1.00 zone has been an area of major, long-term support for the cross since the 1990s”.