NOK/SEK: Risks are on the downside - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that risks are on the downside as downside parallels have emerged on the daily chart and as the weekly indicators send sell signals.

Key Quotes

“Against this backdrop, a return above the resistance at 1.0520 (daily parabolic) sounds tricky and we’d better keep  a lookout at the 1.0350-1.0365 support (lower band of the downside range since November 16). The break of this threshold would underpin bearish momentum, clearing the way for a deeper decline to 1.0285-1.03 and 1.0235 (monthly Bollinger moving average).  The resistances stand at 1.0465/80, at 1.0507-1.0520, at 1.0610 and at 1.0662.”