EUR/NOK Looks to Be Heading Towards Key Support


EUR/NOK traded lower on Wednesday, breaking below the 9.942 barrier, marked by the lows of Monday and Tuesday. The pair is trading below a tentative downside resistance line drawn from the high of August 7th, but we prefer to wait for a decisive dip below 9.906 before we start examining the case of a bearish reversal, as that zone acted as a decent support on August 9th, 13th, and 14th. For now, we will stay sidelined.

As we already noted, a decisive break below 9.906 could signal a bearish reversal on the 4-hour chart, allowing initial declines towards the low of August 5th, at around 9.879. Another dip, below 9.879, could set the stage for larger declines, perhaps towards the 9.834 hurdle, which acted as a strong resistance back on June 6th and 11th. It is also near the inside swing peak of July 31st. The bears may decide to take a break around that area, thereby allowing a small bounce. Nevertheless, as long as such a rebound stays limited below the 9.906 zone, we would remain negative. The forthcoming slide may lead to a dip below 9.834 and could open the path towards the 9.787 obstacle, defined by the low of August 1st.

Looking at our short-term oscillators, we see that the RSI turned down after hitting the crossroads of its respective downside resistance line and the 50 level, while the MACD lies slightly below both its zero and trigger lines. Both indicators suggest that the momentum is negative, but we repeat once again that we prefer to wait for a clear and decisive dip below 9.906 before we consider a negative short-term picture.

On the upside, a clear break above 10.000 would also bring the rate above the aforementioned downside line, which may be the greenlight for the bulls to drive the battle higher, probably towards the peak of August 15th, at around 10.046. If they overcome that barrier as well, then we may see them putting the 10.095 hurdle on their radars. That level is defined as a resistance by the high of August 7th.

Chart

 


 

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

 


 

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 Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group 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 analyses 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 analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

75% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD remains stuck in a narrowing price range after Fed

EUR/USD's struggle for strong directional bias continues after hawkish Federal Reserve (Fed) rate cut. The risks in EUR/USD looks skewed to the downside ahead of Eurozone data and ECB-speak.

EUR/USD News

GBP/USD remains below 100-day SMA on "Super Thursday"

With the mixed Brexit headlines and the US Dollar pullback playing contrasting tunes, the GBP/USD pair remains under 100-day SMA while heading into the London open. All eyes on UK Retail Sales, BOE decision.

GBP/USD News

USD/JPY keeps losses below 108.00 as BOJ disappoints the doves

USD/JPY keeps the losses below 108.00, as the Japanese Yen remains on the front foot in reaction to the Bank of Japan's (BOJ) status-quo that came in as a disappointment for the doves. 

USD/JPY News

Bitcoin dives below $10,000

Bitcoin has lost its cool towards the end of the Asian session on Thursday. After managing to defend $10,000 over the last few days, the granddaddy of cryptos has plunged below several other support areas including $9,900 and $9,800. 

Read more

Gold: Indecisive market, focus on today's close

Gold is currently trading at $1,480 per Oz, representing 0.21% drop on the day. On Wednesday, the yellow metal witnessed two-way business before ending the day with moderate losses at $1,494.

Gold News

Forex Majors

Cryptocurrencies

Signatures