For a numbers of weeks now, the list of major Currencies in my medium-term bearish category has been longer than the bullish one and at the bottom of the pile at the current time are the Norwegian & Swedish Kronas.  Both have shown a marked deterioration over recent days for different cited reasons, one to do with Oil related issues, the other with a deeper than expected cut in Interest rates.  But looking at the charts, these latest bearish factors appear only to add to existing or developing trends, which point to a further depreciation in the weeks ahead for both currencies.

The Norwegian Krona has only been in my bearish category for three weeks, having previously been a notable outperformer, whereas the Swedish Krona has returned to the bearish category it occupied for a number of months after being upgraded to neutral for a few short weeks while it showed potential for base building, which no longer appears to be the case.

I monitor all 10 major currencies against each other and when I scan through all 45 charts each week early signs of trend reversals or continuation patterns are sometimes detected in the most unlikely of pairings.

For instance a possible head & shoulders base (reversal pattern) now appears on the NZD/NOK chart, this after September's failed downwards break through June's low and the key 260 day (1 year) moving average.  Sticking with NOK, bullish continuation patterns exist for CAD/NOK (top right) & GBP/NOK (left), whilst EUR/NOK & CHF/NOK show signs of breaking upwards following recent range trading phases.

 

 

 

 

 

 

 

Left chart GBP/NOK, right chart CAD/NOK. Click on each chart to see a larger (pop-up) image 

The NOK/SEK cross-rate itself shows that the Norwegian Krona is currently the weaker of the two, but in line with those pairs highlighted above, the SEK equivalents have a broadly similar bearish outlook, although in some cases not yet through important support levels.  This could set up an initial correction higher for the SEK, possibly providing a lower risk entry point for SEK shorts, ahead of the bearish trend potentially being set to resume.  The charts below highlight a couple of bearish SEK examples (SEK/JPY & CHF/SEK).

 

Left chart SEK/JPY, right chart CHF/SEK. Click on each chart to see a larger (pop-up) image