Short-term technical outlook on EUR/NOK
click to enlarge charts
Key Levels (1 to 3 days)
Intermediate resistance: 10.1455
Pivot (key resistance): 10.1940
Supports: 10.0950, 10.0510 & 10.0030/9.0000
Next resistance: 10.2800
Directional Bias (1 to 3 days)
Bearish bias in any bounces below 10.1940 key short-term pivotal resistance and a break below 10.0950 reinforces a further potential drop to retest 10.0510 before targeting the next near-term support at 10.0030/9.0000.
However, a clearance with an hourly close above 10.1940 invalidates the bearish scenario for an extension of the corrective rebound towards 10.2800.
- The earlier bullish breakout seen in EUR/NOK above the previous Dec 2008 major swing high of 10.1775 in mid Oct 2019 did not have positive follow through; its price action reintegrated back below 10.1775 and ended with a weekly bearish “Shooting Star” candlestick pattern. These observations suggest a bullish exhaustion of the recent uptrend from Apr 2019 and advocate a potential bearish reversal (see weekly chart)
- In the shorter-term as depicted on the 1-hour chart, it has started to evolve within a minor descending channel in place since 29 Oct 2019 high with the upper boundary/resistance at 10.1455 and lower boundary/support at 9.0000.
- From the recent 11 Nov 2019 minor swing low area of 10.0450, it has staged a “bearish flag” ascending range configuration that tends to represent a potential dead cat bounce before another downleg resumes.
Charts are from eSignal
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.