16 Jan 2015
EUR/NOK capped by 9.0000
FXStreet (Edinburgh) - EUR/NOK is now trading in the lower end of the weekly range, struggling to break above the 9.0000 mark on a sustainable basis.
EUR/NOK eyes on ECB, oil
The Nordic cross is navigating between 9.3000 and 8.9000 since late December, with the crude oil prices and the EUR dynamics being the main drivers of the price action. However, the solid fundamentals of the Norwegian economy and the lack of disinflationary pressures - unlike other developed economies - remain so far a good buffer against the slump in oil prices, leaving the euro, and thus the ECB, as the usual suspect regarding the next moves in the cross.
Jane Foley, Senior Currency Strategist at Rabobank, suggested, “We see risk that EUR/NOK will trade in a choppy range around 9.15 in the coming months, with the 9.00 area offering strong support”.
EUR/NOK important levels
As of writing the cross is flat at 8.8920 with the immediate resistance at 9.1628 (high Jan.15) followed by 9.1960 (high Jan.13) and then 9.3020 (high Jan.7). On the flip side, a drop beyond 8.7900 (low Jan.15) would pave the way to 8.7850 (high Dec.1) and finally 8.6250 (low Dec.4).
EUR/NOK eyes on ECB, oil
The Nordic cross is navigating between 9.3000 and 8.9000 since late December, with the crude oil prices and the EUR dynamics being the main drivers of the price action. However, the solid fundamentals of the Norwegian economy and the lack of disinflationary pressures - unlike other developed economies - remain so far a good buffer against the slump in oil prices, leaving the euro, and thus the ECB, as the usual suspect regarding the next moves in the cross.
Jane Foley, Senior Currency Strategist at Rabobank, suggested, “We see risk that EUR/NOK will trade in a choppy range around 9.15 in the coming months, with the 9.00 area offering strong support”.
EUR/NOK important levels
As of writing the cross is flat at 8.8920 with the immediate resistance at 9.1628 (high Jan.15) followed by 9.1960 (high Jan.13) and then 9.3020 (high Jan.7). On the flip side, a drop beyond 8.7900 (low Jan.15) would pave the way to 8.7850 (high Dec.1) and finally 8.6250 (low Dec.4).