Chart NOK/SEK Update: Further gains limited in consolidation
Consolidation has given way to a push higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.0230 | ** | 15 May YTD high | S1 | 1.0050 | * | congestion tops | |
| R3 | 1.0200 | * | historic congestion | S2 | 1.0000 | * | parity, congestion | |
| R2 | 1.0160~ | ** | 23 Jul (m) high | S3 | 0.9900 | * | congestion | |
| R1 | 1.0100 | * | congestion | S4 | 0.9800 | ** | congestion, 38.2% ret |
Asterisk denotes strength of level
12:15 BST - Consolidation has given way to a push higher, with prices reaching congestion resistance at 1.0100 before settling into fresh consolidation. Daily stochastics and the daily Tension Indicator are rising, suggesting room for a test above here. But mixed weekly charts should limit initial scope in renewed consolidation beneath strong resistance at the 1.0160~ monthly high of 23 July. Improving monthly charts point to a later break, with focus to then turn to critical multi-month resistance at the 1.0230 current year high of 15 May.
Meanwhile, support is at the 1.0150 congestion tops and extends to congestion around 1.0000. A close beneath here would add weight to sentiment and open up further congestion around 0.9900. However, any tests of here should be limited in renewed consolidation.