Will EUR/NOK exit the wedge soon?


EUR/NOK traded higher today, breaking above the 10.930 barrier. However, the recovery was stopped by the upper bound of a falling wedge that’s been containing the price action since April 22nd. As long as the rate stays within that formation, we would adopt a neutral stance. We would like to see a break above the upper end before we get confident on larger advances.

If indeed the bulls manage to overcome the crossroads of that boundary and the 11.020 level, they may get encouraged to drive the battle towards the high of May 15th, at 11.110. If the advance doesn’t stop there, the rate could climb towards the 11.180 hurdle, marked by the high of May 12th. Another break, above 11.180 is likely to set the stage for extensions towards the 11.250 barrier, near the inside swing low of May 4th.

Shifting attention to our short-term oscillators, we see that the RSI lies above 50, while the MACD, although negative, lies above its trigger line and appears ready to obtain a positive sign soon. What’s more, there is positive divergence between the price action and the RSI. All these signals suggest that the rate may start picking up upside speed soon, which increases the chances of an upside exit out of the falling wedge. That said, the RSI has just ticked down, and thus, we would stay careful of potentially some further retreat before the next positive leg.

Having said all that though, in order to start examining the bearish case, we would like to see a clear dip below 10.860, which has been providing support since Tuesday. Such a move would confirm a forthcoming lower low and may initially target the 10.790 level, where another break could allow the bears to put the 10.720 hurdle on their radars. That level marks the low of March 10th.

EURNOK


 

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.

83% 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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

When is Japan’s data-dump and how could it affect the USD/JPY?

While the risk catalysts have recently been lighter, mainly due to the equities’ upbeat performances, the underlying fears aren’t yet wiped out. Technically, buyers keep targeting the 108.05/10 area comprising multiple highs marked since April-19.

Read more

AUD/USD: Upside momentum again fizzles around 11-week top, still above 0.6600

Having marked yet another failure to stay strong beyond 0.6650, AUD/USD remains depressed around 0.6640/35 at the start of Friday’s Asian session.Risk-tone remains positive as equities cheer hopes of further stimulus, economic restart.

AUD/USD News

Goldman Sachs puts Bitcoin on par with Gold

One of the world's largest investment banks, Goldman Sachs, announced a conference for its clients entitled “Implications of Current Inflation, Gold and Bitcoin Policies”

Read more

Gold: Limited gains below the $1730/oz level for XAU/USD

After bouncing from the 1690/1700 price zone XAU/USD is stalling below the 1730 resistance and the 50 SMA on the four chart. The picture is mixed as it seems the metal is challenging a tough resistance near the 1730 level.

Gold News

WTI oil prices rally on gasoline demand and hopes of output cuts’ extension

WTI crude oil prices have appreciated more than 5% on Thursday to reach $34 and approach two-month highs. Investors' optimism about an increase of gasoline demand and speculation of an OPEC+ deal to extend output cuts are driving crude prices higher.

Oil News

Forex Majors

Cryptocurrencies

Signatures