By looking at the 4-hour chart of EUR/NOK, we can easily say that the bulls are really trying hard to get the feeling back of how it is to be in the driver’s seat. On Monday, we saw the pair finding support at the 9.430 level. On Wednesday, EUR/NOK started curving up, had its last test of that support zone, before it set sail north. This led to a break and a close above the short-term tentative downside resistance line taken from the peak of the 7th of September. For now, we will stay positive, at least in the short-run and aim for higher levels.
Because the psychological level of 9.500 has been broken already, we will aim for our next potential area of resistance at 9.550, marked by the low of the 25th of September and also by the inside swing high of the 19th of September. A break and a close above that resistance level could place the bulls into an even more comfortable position and could open the path towards the next potential area of resistance near the 9.620 barrier, marked by the high of the 20th of September.
Our oscillators, the RSI and the MACD, are supporting the idea discussed above. The RSI is above 50 and seems to be on its way to enter the above-80 territory. The MACD is also showing signs of strength as it has now moved above zero and continues to run above its trigger line since around the 1st of October. Also, the MACD is pointing higher, which is a positive for the pair.
For us to get comfortable with the downside, we would need to see EUR/NOK getting back down to the 9.430 area and, potentially, closes below it. The pair could start forming lower lows again and we could start considering lower support zones, where the first good one to watch could be the 9.385 hurdle, marked by the lowest point of July. If the bears remain in the driver’s seat, EUR/NOK could easily travel all the way to the 9.353 obstacle, which was last seen about a year ago, on the 17th of October 2017.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2018 JFD Brokers Ltd.