Chart EUR/NOK Update: Limited tests higher - background under pressure
The anticipated break lower has tested below the 10.8525 Fibonacci retracement, with prices reaching 10.8165 before bouncing to currently trade around 10.8900
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 11.1000 | minor congestion | S1 | 10.8525 | ** | 76.4% ret of May-Jun rally | ||
| R3 | 11.0520 | ** | 28 Jul (w) high | S2 | 10.8165 | 25 Aug low | ||
| R2 | 11.0000 | * | congestion | S3 | 10.8000 | * | break level | |
| R1 | 10.9300 | * | break level | S4 | 10.6965 | ** | 21 May YTD low |
Asterisk denotes strength of level
11:40 BST - The anticipated break lower has tested below the 10.8525 Fibonacci retracement, with prices reaching 10.8165 before bouncing to currently trade around 10.8900. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting room for further gains towards resistance at 10.9300. But negative weekly charts should limit any break in consolidation within multi-week congestion beneath 11.0000. A close above 11.0000, if seen, would improve sentiment. But a further close above the 11.0520 weekly high of 28 July is needed to turn sentiment positive and confirm a near-term low in place at the 10.8165 low of 25 August.
Meanwhile, support is at 10.8525 and extends to congestion around 10.8000. A later close beneath here will add weight to sentiment and extend losses from the 11.3585 monthly high of 29 June towards critical support at the 10.6965 current year low of 21 May.