FX Board: December 18, 2013
Saxo Bank | Dec 19, 2013 01:53AM ET
Here is the latest beta version of the FX Board. It's tough to draw any conclusions on USD pairs until we see the movement in the wake of this evening's highly anticipated Federal Open Market Committee meeting. Meanwhile, the strong UK employment data today has pushed EURGBP down sharply and flipped the short-term trend signal to negative.
Elsewhere, EURNOK and EURSEK are trying key local trend support after the Scandies have pushed stronger today, driven by Sweden's strong confidence data. NOKSEK is inching toward a longer-term uptrend and should already have that status, according to developments in the rate spreads, though it will take another push to the upside to get an actual technical signal.
See below the Board for a couple of chart highlights.
Chart: EURGBP
A big move higher in GBP crosses today. EURGBP has sold off so sharply on strong employment data. The move has seen it engulf the previous several days of rallying action and the pair may close below the 10-day exponential moving average, a possible set-up for a bigger sell-off in the days ahead.
Chart: NOKSEK
NOKSEK has been churning near the 1.0700 area with the stronger Swedish confidence data spoiling the attempted move above resistance, but rate spreads continue to suggest upside pressure. A longer-term bullish trend signal will come in if the pair manages a daily close above today's highs in the days ahead.
Chart: USDCAD
USDCAD flipped ST positive after the 21-day simple moving average and flat-line support from the previous high held very nicely during the recent consolidation. But as with most USD pairs, we need to know the outcome of the FOMC meeting before judging the prospects, and 1.0567 and 1.0700 are the two flat-line triggers on this chart for the hours/days ahead.
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