EUR/NOK: Decline to persist on inability to cross 11.56/11.59 hurdle – SocGen

The Norwegian Krone has started the European FX session a touch weaker. Economists at Société Générale analyze EUR/NOK outlook.

EUR/NOK has embarked on a series of falling tops and bottoms

EUR/NOK carved out a lower high near 12.00 as compared to the one in May 2023 near 12.10 and has embarked on a series of falling tops and bottoms. It has stabilized below the 200-DMA denoting regain of downward momentum. It would be interesting to see if the pair can reclaim the Day Moving Average near 11.56/11.59.

Inability to cross this hurdle would mean persistence in down move towards 11.10 and projections of 10.99; this could be a crucial support.