Chart EUR/NOK Update: Cautious in range
Choppy trade beneath congestion resistance at 11.0000 failed to sustain tests above here
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 11.1750 | ** | 61.8% ret of Jun-Jul fall | S1 | 10.8765 | ** | 24 Jul (m) low | |
| R3 | 11.1175 | ** | 50% ret of Jun-Jul fall | S2 | 10.8525 | ** | 76.4% ret of May-Jun rally | |
| R2 | 11.0600 | ** | 38.2% ret of Jun-Jul fall | S3 | 10.8000 | * | break level | |
| R1 | 11.0000 | * | congestion | S4 | 10.6965 | ** | 21 May YTD low |
Asterisk denotes strength of level
11:40 BST - Choppy trade beneath congestion resistance at 11.0000 failed to sustain tests above here, with a steady drift lower reaching 10.9250 as overbought daily stochastics unwind. The rising daily Tension Indicator is also showing early signs of flattening, suggesting room for further tests lower in the coming sessions. But mixed weekly charts suggest any initial losses could give way to consolidation above strong multi-week support within the 10.8525 Fibonacci retracement and the 10.8765 monthly low of 24 July. A close beneath here, if seen, would turn sentiment negative and extend losses from the 11.3585 monthly high of 29 June initially towards congestion around 10.8000.
Meanwhile, resistance remains at 11.0000 and extends to the 11.0600 Fibonacci retracement. A close above here is needed, not yet seen, to turn sentiment positive and extend late-July gains towards the 11.1175 retracement.