In the duel of the Nordic nations between the strong Norwegian Ragnar (NOK) and the fierce Swedish Earl (SEK), only one can survive.
I am betting my gold coins on the Norwegian krone for the following reasons:
- NOKSEK is fundamentally undervalued
-> fundamentally the pair should rather be trading at 1.04 - 1.05
- Norges Bank surprised EVERYONE...
NOKSEK is exhibiting consolidation with a bullish bias.
It is hitting resistance levels and if it succeeds in penetrating could be the start of a Bullish Reversal.
Signs of Bullish momentum after a post-move consolidation.
Opportunity for early entry into a Bullish Reversal but respect the stop-loss which indicates a continuation of the downtrend
Both currencies are exposed to risk aversion but we look for SEK to outperform. NOK was unable to capitalize on a hawkish Norges Bank outcome but SEK might gain if Riksbank delivers another hawkish surprise.
Overall Average Signal from all our indicators suggests a Short. Entry is at market open and exit is shortly before market close or whenever you are okay with profits. You should be careful with this one.
After creating a series of LHs and LLs the price action seems to be retracing.
With the formation of two strong bullish candles enter a BUY, Targeting 38% FR and protecting the last LL.
NORSEK is slowing down. I don’t think it will go all the way down to trend line but somewhere between 50 and 200 EMA.
Divergence is forming on daily chart. Looks like MACD bearish cross over is about to happen.
