EUR/NOK has been trading sideways for the past couple weeks and the tight range that it is stuck in is between the 9.5140 and 9.5580 levels. The pair is also above its prior tentative medium-term downside resistance line, taken from the peak of the 21st of December last year. This adds a bit of bullishness into the near-term outlook, but a good confirmation of the upside could be a break above the 9.5580 barrier.
If we see a good rebound from the aforementioned downside resistance line, we will aim for a potential test of the 9.5580 area, a break of which could open the door towards the 9.6200 obstacle, which was the high of the 20th of July. A break of that could set the stage for some higher levels, like the 9.6780 hurdle, marked by the peak seen on the 8th of May. If the bulls remain in the driver’s seat, then a break above 9.6780 could lead to a test of the 9.7230 resistance zone, which held strong between the 22nd of February and the 3rd of May. This is where the rate could stall for a while until the bulls and the bears decide on the faith of EUR/NOK.
On the downside, if EUR/NOK moves and closes below the 9.5140 level, this could be a sign that not everything is looking positive with this pair. The break could open the path towards the 9.3840 area, which was the lowest the pair has been for the past 9 months. If the area would not hold, then a further decline to the 9.2960 barrier, marked by the low of the 23rd of October 2017, could be possible.
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