Birmingham , UK

Euro Technical Outlook – EUR/USD and EUR/NOK on Diverging Paths


Euro, EUR/USD, US Greenback, EUR/NOK, Norwegian Krone – Speaking factors

  • EUR/USD makes decrease lows as momentum seeks to re-assert itself
  • A strong rally for EUR/NOK may carry some dangers as volatility ticks up
  • Completely different instructions for Euro in opposition to USD and NOK may present alternatives


EUR/USD made a contemporary 2 -year low yesterday because it broke under latest lows and a descending trendline.

The constantly of constructing decrease lows and decrease highs may counsel {that a} bearish pattern setting stays in play.

The previous few periods have seen the worth transfer again under the 10-day easy transferring common (SMA) and this might point out that short-term bearish momentum has re-accelerated.

A bearish triple transferring common (TMA) formation requires the worth to be under the brief time period SMA, the latter to be under the medium time period SMA and the medium time period SMA to be under the long run SMA. All SMAs additionally have to have a unfavourable gradient.

The 10-, 21-, 34-, 55, 100- and 200-day SMAs all lie above the worth and have unfavourable gradients. Utilizing any mixture of those SMAs they’re all in appropriate order to satisfy the standards for a TMA.

Close by resistance may very well be on the pivot level of 1.0758. Additional up, there may a resistance zone at 1.0923 – 1.0945, the place there are a few pivot factors, a earlier excessive and the 34-day SMA.

A descending trendline can be close to the 55-day SMA close to 1.1030, which can supply resistance.

The March 2020 low of 1.0638 may present help and a break under there may open up a run towards the January 2017 low of 1.0340. A transfer under 1.0340 could be the bottom degree EUR/USD has traded at since 2003.


Chart Created in TradingView


EUR/NOK has rallied over 2% in the previous few days, piercing a number of resistance ranges.

On this transfer, it was unable to shut above the height seen earlier this month at 9.7645 and the 55-day easy transferring common (SMA), presently at 9.7693. These ranges could proceed to supply resistance.

The transfer did break above the higher band of the 21-day easy transferring common (SMA) based mostlyBollinger Band and closed outdoors it. If a detailed is noticed again contained in the band, it would sign a reversal.

The width of the bands has begun to increase after a interval of consolidation noticed them slender. This may increasingly point out accelerating volatility for the cross charge.

Help may very well be on the prior resistance degree of 9.7201 or the 5- and 21-day SMAs, presently at 9.6761 and 9.5914 respectively.


Chart Created in TradingView

— Written by Daniel McCarthy, Strategist for

To contact Daniel, use the feedback part under or @DanMcCathyFX on Twitter

DailyFX supplies foreign exchange information and technical evaluation on the traits that affect the worldwide foreign money markets.

Leave a comment