Euro, Norwegian Krone, EURNOK – TALKING POINTS
- EURNOK may rise this week and re-test 11-year high
- Congestive price action in play after 4% jump in July
- Longer-term outlook suggests underlying bullish bias
See our free guide to learn how to use economic news in your trading strategy !
EURNOK has risen over four percent since mid-July and briefly touched an 11-year high at 10.0972 before it cooled off and retreated close to the 38.2 percent Fibonacci extension level. A break below this point exposes the pair to support at around 9.84. The sideways movement of the pair suggests indecision or exhaustion after the significant climb in July to early August.
EURNOK – Daily Chart
EURNOK chart created using TradingView
Zooming out to a weekly chart shows EURNOK is continuing to strongly climb along – and often times above – the seven-year rising support channel (red parallel lines). The pair is less than half of a percent away from reaching the highest exchange rate in its existence. Despite the congestion shown on a daily chart, the long-term outlook suggests a strong upside-bias that may continue throughout year-end.
EURNOK Exchange Rate Approaching Highest in its Existence
EURNOK chart created using TradingView
Supportive fundamentals may be the driving force behind the pair’s ascendancy this week and beyond. Rising geopolitical uncertainty in Europe along with deteriorating trade relations could continue to pressure the export-driven Norwegian economy and sap capital from the Krone. Commentary from the Norges Bank’s last policy meeting suggests officials may slowly start pivoting from hawkish to neutral and maybe even dovish.
EURNOK TRADING RESOURCES
- Join a free webinar and have your trading questions answered
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com
To contact Dimitri, use the comments section below or @ZabelinDimitri on Twitter