The European currency Euro trades in an uptrend against the Norwegian Krone. The daily chart below shows the EURNOK price bounced from EMA 50, the 11.62 mark. As of writing, the pair trades at about 11.7, slightly above last day’s close.
It is worth noting that an awesome oscillator divergence signal promised the dip from 11.8 that began on May 1st. Since the bears failed to close below EMA 50, the decline that began on May 1st and ended on May 6th should be considered a consolidation phase for the primary trend, which is bullish.
That said, we zoom into the EURNOK 4-hour chart to better understand the price action and find key levels that help us predict the market’s next moves and potential trading opportunities.
EURNOK Technical Analysis – Bulls Confront Resistance at 11.77
The 4-hour chart above shows the price trading in the bullish channel depicted in yellow. However, the bulls are facing the EMA 50 barrier, the 11.7 mark, a level of resistance backed up by the Ichimoku cloud. As a result, the EURNOK is dipping from this strong resistance. However, the technical indicators signal that the bullish trend should resume.
The awesome oscillator bars are about to flip above the signal line, and the RSI indicator hovers above 50. But, the standard deviation warns of a slowdown in trend.
EURNOK Forecast – Buyers Await 11.77 Breakout Confirmation
From a technical standpoint, the EURNOK is in a bull market. However, for the uptrend to resume, the buyers must close and stabilize the price above the 11.770 mark or the 50% Fibonacci level. If this scenario comes into play, the pullback from 11.630 will likely expand to the 78.6% Fibonacci retracement level, followed by May’s peak point of 11.870.
The EURNOK Bearish Scenario
Conversely, the %38.2 Fibonacci level (the 11.721 mark) is pivotal. If the price dips below this support, the decline in today’s trading session from 11.770 will likely extend to 23.6% Fibonacci, followed by May’s lowest point, the 11.63 mark.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
