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.
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