Quotes from Societe Generale Cross Asset Research:
-NOK/SEK tested the lower limit of a weekly upward channel at 1.0730/1.0670 which also happens to be the 61.8% retracement of up move from February lows. Weekly RSI is testing a support indicating 1.0730/1.0670 as an important level.
-If we drop down to daily chart, the pair has formed a hammer at aforementioned level and has rebounded towards the neckline of a head and shoulder formation at 1.0900/30, also close to the 21 Day MA.
-Daily stochastic indicator is diverging and a break above 1.0900/30 will indicate possibility of further recovery towards 1.1030, the 76.4% retracement from October highs. Only a break below 1.0730/1.0670 will mean an extended correction.
The material has been provided by InstaForex Company – www.instaforex.com