NOK/SEK: Pullbacks towards 1.0844 cannot be ruled out in the short term - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that given that the daily stochastic is nearing overbought territory for NOK/SEK and that daily volatility remains subdued, pullbacks cannot be ruled out in the short term towards 1.0844 (daily Bollinger moving average) and, possibly, 1.0780-1.08 (quarterly Bollinger moving average).

Key Quotes

“These pullbacks should enable the pair to gather its breath before staging new rebounds. The ascending channel in evidence in the weekly chart and the turnaround of the weekly indicators point to a more pronounced rise in the next few weeks towards the resistance at 1.1006 (weekly parabolic) before the one around 1.1123-1.1140 (lower band of weekly Bollinger). A breakout above these last levels would open the way towards 1.12-1.1220 before 1.1270 (half-yearly Bollinger moving average).”