NOK/SEK seen higher near term – Danske Bank

Chief Analyst at Danske Bank Allan von Mehren still sees room for extra upside in the Nordic cross.

Key Quotes

“NOK/SEK keeps moving higher amid EUR/SEK breaking above technical important levels while higher short-end NOK-rates have weighed on EUR/NOK”.

“Going forward, we continue to emphasise upside potential in the cross from both fundamentals and technicals. On the latter, note that all the key daily moving averages (MA) have now turned positive; notably, the 50DMA will break the 100D-MA on Friday for an unchanged spot while a sustained break of 1.0475 (May high) would open up for a test of 1.0566 (April high)”.

“Hence, we still like to be long NOK/SEK”.