Euro trying to break resistance against Norwegian krone
The Euro has rocketed higher during the trading session against the Norwegian krone, reaching towards the 10.20 NOK level. This is an area where we have seen selling previously, so it would not be a huge surprise to see resistance in this pair at this level again. However, if we can clear the 10.20 NOK level, the market is very likely to go towards the 10.30 NOK level, which was the recent highs.
The 50 day EMA is starting to show signs of being dynamic support, and as a result it’s important to pay attention to it. With this, I believe that there is a bit of a “floor” at the psychologically important 10 NOK level, an area that had been very resistive previously, and is now offering support based upon “market memory” and of course the psychological importance of that figure. At this point in time, the market is going to be moving with oil as well as risk. The “riskier” the global situation is, the more likely this pair is to go higher. If oil rises, then that could put downward pressure on this market, depending on how strong and whether it can break above the $60 a barrel level. At this point, it looks very likely to continue pushing higher, but keep in mind that the OPEC meeting this week could throw a bit of a monkey wrench into the situation when it comes to the petroleum influence. With that, I believe that this market remains bullish, but a short-term pullback may be necessary in order to build up the necessary momentum to finally break higher and reach towards the recent highs again. A breakdown below the 10 NOK level would be extraordinarily negative, and as a result sellers would more than likely come in and push this pair down to the 9.85 NOK level, an area that was supportive in the past.
The 50 day EMA is starting to show signs of being dynamic support, and as a result it’s important to pay attention to it. With this, I believe that there is a bit of a “floor” at the psychologically important 10 NOK level, an area that had been very resistive previously, and is now offering support based upon “market memory” and of course the psychological importance of that figure. At this point in time, the market is going to be moving with oil as well as risk. The “riskier” the global situation is, the more likely this pair is to go higher. If oil rises, then that could put downward pressure on this market, depending on how strong and whether it can break above the $60 a barrel level. At this point, it looks very likely to continue pushing higher, but keep in mind that the OPEC meeting this week could throw a bit of a monkey wrench into the situation when it comes to the petroleum influence. With that, I believe that this market remains bullish, but a short-term pullback may be necessary in order to build up the necessary momentum to finally break higher and reach towards the recent highs again. A breakdown below the 10 NOK level would be extraordinarily negative, and as a result sellers would more than likely come in and push this pair down to the 9.85 NOK level, an area that was supportive in the past.