Is EUR/NOK Set for a Continuation Move Higher?

After breaking the medium-term tentative downside line drawn from the high of October 30^th, EUR/NOK started pushing further north and is now seen trading above a steep short-term tentative upside line taken from the low of May 17^th. As long as the rate continues to balance above that upside line, we will stay positive.

A push above the current highest point of May, at around 10.240, would confirm a forthcoming higher high and could open the door for higher areas. EUR/NOK might drift to the 10.275 hurdle, marked by the high of March 24^th, or the rate may get lifted to the 10.382 zone, marked by the highest point of February, where it could stall for a bit. That said, if the buyers continue to dominate the arena, they might send the pair even higher, where the next potential resistance level might be at 10.480, marked by the highest point of January.

The RSI is currently flat, but remains well above 50. The MACD is pointing higher, while running above zero and its trigger line. The two oscillators are showing positive price momentum, which supports the idea discussed above.

Alternatively, if the aforementioned upside line breaks and the rate falls below the 10.074 hurdle, marked by the inside swing high of May 17^th, that would place the pair below all of its EMAs on our daily chart, suggesting that further declines could be possible. EUR/NOK may then drift to the 9.956 obstacle, a break of which might set the stage for a push to the 9.897 level, marked by the lowest point of April.

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