SEKNOK is offering an interesting setup in the weekly chart. I'm short, looking to benefit from the positive carry of this pair, and also the topping pattern on chart.
I'd reccomend adding to it once we're 1 atr in the money after entry. Currently, we have a valid time at mode sell signal on chart, where the mode nicely matches the previous sharp rally's top. Bearish momentum is evident and we can expect more commitment to come into this pair as time goes by.
Holding shorts in this pair, yields a nice carry because of the Swedish Krona and the Norwegian Krona's interest rate differential, so I'm sure many will be looking to benefit from it, either trading forward swaps, or by trading currency. (the former seemingly posessing lower risk, but not so easily accesible to most traders unlike the FX cross).
Good luck if taking this trade, remember to keep risk below 1%, and stops above the red line on chart. Cheers,
Ivan Labrie.
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Mode retest, either reload shorts, or stand aside for a while. If still in, positive carry makes the wait tolerable.
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Retest of the mode offered a good reentry.
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Nice 'key reversal', downtrend on track.
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On track.
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Excellent progress last week, it's viable to sell pullbacks here.
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This trade pays a hefty carry...
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Anyone took this one? Carry was insane for it...it had good fundamental reasons to fall.