EUR/NOK drops to multi-day lows, targets 10.00

EUR/NOK extends the drop to 6-day lows near 10.0700
The barrel pf Brent crude hovers around the $65.00 mark.
Norway’s Retail Sales are next on the docket on Tuesday.

Pablo Piovano FXStreet

The Norwegian krone extends the upside momentum and drags EUR/NOK to fresh multi-day lows in the 10.0700 neighbourhood.

EUR/NOK looks to crude oil

EUR/NOK adds to Friday’s pullback and navigates the area of 2-week lows around 10.0700 on Monday.

The better tone in crude oil prices sends the European reference Brent crude to also 2-week highs in levels beyond the $65.00 mark per barrel after the Suez Canal jam was finally sorted out.

Later in the week, Retail Sales for the month of February are due seconded by the Central Bank’s Currency Purchases figures.

What to look for around NOK

NOK continues to target the psychological 10.00 barrier, always following Brent dynamics and the hawkish stance from the Norges Bank. That, coupled with a faster economic recovery, the firm vaccine rollout and prospects of a solid rebound in the global activity are seen collaborating with the view of a stronger currency in the medium-term. It is worth recalling that the Norges Bank is predicted to be one of the first central banks to hike rates in the DM space.

EUR/NOK significant levels

As of writing the cross is losing 0.1638 at 10.0711 and a breach of 10.0032 (2021 low Mar.11) would expose 9.8163 (2020 low Jan.2) and finally 9.5552 (2019 low Apr.22). On the upside, the next up barrier emerges at 10.2749 (weekly high Mar.24) followed by 10.4826 (monthly high Feb.26) and then 10.5543 (2021 high Jan.28).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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