EUR/NOK: Bears Could Take Charge Once Again
JFD Team | Oct 25, 2021 07:31AM ET
EUR/NOK has been consolidating in the 9.639-9.639 range since Thursday, marked by the low and the high of Wednesday.
Overall, the pair trades below the downside resistance line taken from the high of Aug. 20, and thus, we maintain a negative stance in the near term.
However, to start examining a trend continuation, we would like to see a dip below 9.639. This will confirm a forthcoming lower low on both the 4-hour and daily charts and could initially pave the way towards the 9.554 zone, marked by the low of April 22, 2019.
If the bears don't stop there either, we could see more significant downside extensions, perhaps towards the low of Oct. 16, 2018, at around 9.417.
Shifting attention to our short-term oscillators, we see that the RSI lies flat fractionally below its 50 line, while the MACD, although negative, is still slightly above its trigger line.
Both oscillators suggest that the rate is running out of downside momentum. We would wait for a dip below 9.639 before we get more confident about the downside.
To abandon the bearish case, we would like to see a recovery back above the 9.968 barrier, marked by the high of Oct. 7.
Such a move could signal a break above the downside line taken from the high of Aug. 20 and encourage the bulls to aim for the 10.040 zone, marked by the high of Oct. 4.
Another break above 10.040 could target the inside swing low of Sept. 30, at 10.107, the break of which could allow extensions towards the peak of Sept. 30, at 10.225.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.