EUR/NOK continues its path lower. The pair has been in a downtrend since the 21st of December last year. For the whole of last week, the Norwegian Krone was strengthening against the common currency, where only on Friday the bulls managed to get a breath of fresh air and close the day with minor gains. It is interesting to also point out that the pair started forming a falling wedge, since the aforementioned reversal to the downside.
OUTLOOK (SCENARIO A / B)
For now, we remain bearish and we could expect a further slide towards the lower side of the previously mentioned wedge. But before the pair could make its way there, it has to break through some key areas of support. The first one to watch is the 9.400 area, which twice held strong in June and didn’t allow the rate to drop further. Maybe the third attempt could be lucky for the bears. A drop below that level, opens the path to the slightly lower support at 9.355, which could be the last key level of support for EUR/NOK before it reaches the lower side of the wedge. Also, a good area to watch there could be the 9.296 zone, marked near the lowest point of October 2017.
On the upside, a move to, and eventually a break of, the 9.469 hurdle, marked by last Thursday’s high, could interest the bulls in jumping in and driving EUR/NOK towards last week’s highs at around 9.529. Certainly, if this won’t be enough for the bulls then we could see them talking the pair all the way up to the upper bound of the wedge for a quick test.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.
FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.
Copyright 2018 JFD Brokers Ltd.