Norwegian krone, EUR / NOK, USD / NOK – call points
- The Norwegian krone has softened against it Euro and US dollar late
- Although EUR / NOK and USD / NOK settings are similar, there are differences
- Is NOK continuing to weaken or is the trend over?
EUR / NOK TECHNICAL ANALYSIS
After reaching a 9-year low in April, the EUR / NOK started to rise. However, when the growing trend was broken at the end of August, there is some upward trend. This is shown by the 55-day and 100-day simple moving average (SMA), maintaining a positive gradient.
Historically, EUR / NOK does not tend to trade between 55-day and 100-day SMAs over time. It should be noted here that past results do not indicate future results. A break above the 55-day SMA, currently 10,368, may indicate a continuing upward trend. A break of less than a 100-day SMA, currently 10,244, may indicate a return on the range of trading.
On the upper side, there may be some resistance at the rupture turning point 10,353 and then even greater at 10.570 for the decreasing trend line resistance. Additional resistance was seen at recent higher levels, 10.632 and 10.703, respectively.
On the downside, some support may be provided in the previous lows of 10,198, 10,114, 10,040 and 9,900.
EUR / NOK chart
USD / NOK TECHNICAL ANALYSIS
Like many currency pairs, USD/ NOK has tended to alternate between trading blocks and trending patterns over the past year. The recent downward move appears to have broken the range from the lower limit of the trading block.
As the USD / NOK fell below the trading range, it also affected the lower limit of the 21-day SMA, the 2 standard deviation Bollinger band. After that, the band has moved back and this could be a signal that the USD / NOK is returning to the trading environment of the range.
A signal to monitor the possible onset of decline would be to exceed the 21-day SMA beyond the 55-day SMA to form a death cross. The 21-day SMA is currently 8,783 and the 55-day SMA is 8,773.
On the downside, some support may be provided at earlier low times of 8,606 and 8,452. Above the market, some resistance can be observed for 21-day and 55-day SMAs, 8,783 and 8,773, respectively.
– Written by Daniel McCarthy, Strategist at DailyFX.com
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