NOK/SEK could be heading lower

Clear triple divergence between price and stochastics (a powerful reversal sign) has stretched positioning against the 200-day moving average.

A failure of the Aug 2012 lows and 76.4% retracement of the 2013 to 2104 sell-off has also been seen, and on the weekly chart it looks as though we are going to see a sizeable bearish weekly reversal.

Looking at the oscillators, the MACD is below the signal line and stochastics have made a lower low. You can also see the stochastic on the weekly chart looks ominously poised to fall.

Traders might look to sell the pair around these levels, with a potential stop at 1.1230 (just above the May 30 high), for a potential move to 1.0865 to 1.0800.

Spot FX NOK/SEK chart

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