A higher oil price and improved risk sentiment has brought EUR/NOK slightly below 10.00 again. While economists at Nordea do see more downside in the cross ahead, it is probably limited.
EUR/NOK is under 10.00 again
“EUR/NOK could fall a bit more in the short-term, but the downside is very limited. From a technical perspective, the current RSI of 35 implies we are close to the bottom for now, but EUR/NOK has a bit more to fall until RSI reaches 30 – a level that would indicate that NOK is overbought against the EUR. Overall, we see EURNOK trading in the range 9.95-10.15 in the short-term.”
“At some point the fall in EURNOK will take a break, and we would not be surprised if the cross moves up again. Since the meltdown in March last year, the whole way down has been characterised by EUR/NOK moving two steps down, one step up, etc. This will likely continue also ahead. But the overall direction towards the summer is lower.”
“The combination of higher oil prices and higher rates in Norway is why we hold our view for EUR/NOK coming further below 10.00 towards and over the summer. But the downside is restricted: EUR/NOK traded mostly in the range 9.50-10.00 during 2018/19 and we don’t expect to see much more downside than 9.50.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.