EUR/NOK – Long term
3 Oct 2014
EUR/NOK peaked at 10.151 in December 2008 and then moved steadily lower, eventually taking out the October 2007 extreme low of 7.6256 to reach as low as 7.2490 in August 2012, before forming a multi-month double bottom. Between 38.2% & 50% of the 10.151-7.2490 decline has since been retraced with a potential double top now spied at 8.5416 / 8.5229, above a 8.0795 neck-line. MACD shows signs of turning down and the risk is for a breakdown through the 8.0795 neck-line to trigger the start of a move towards 7.7661-7.7766 (July / August 2013 higher low) and possibly as far as former key support from 2007 & 2010 around 7.6256-7.6786. Potentially a key higher low could develop over the coming 6-12 months and set up a renewed longer-term recovery towards the 8.70-8.85 region.
EUR/NOK MONTHLY CANDLESTICK CHART