The EUR/NOK currency pair has been stranded in an ascending channel in force since mid-July. The latest confirmation was provided in this session when the price halted near the 9.33 mark for the second time in two days.
Being a bullish pattern, this ascending channel should guide the pair for an upside breakout that may occur next week. However, the latest two peaks have failed to reach the upper channel boundary, thus suggesting that bulls might have lost their strength.
Thus, the 9.36 area should be observed carefully. In case the rate does not surpass the short-term down-trend, a bearish breakout is the most likely option.
Being a bullish pattern, this ascending channel should guide the pair for an upside breakout that may occur next week. However, the latest two peaks have failed to reach the upper channel boundary, thus suggesting that bulls might have lost their strength.
Thus, the 9.36 area should be observed carefully. In case the rate does not surpass the short-term down-trend, a bearish breakout is the most likely option.
EUR/NOK is trading in a medium-term ascending channel. Along the way, the pair also formed a narrow channel up which was breached on Monday. A breakout of this pattern is normally followed by a price decline; this, however, did not occur in this case.
The rate in turn was supported by the 55-hour SMA and thus remained near the 9.39 mark. The Euro managed to breach this level on Tuesday morning, suggesting that the expected fall might actually happen.
However, the magnitude of this decline in the short term is likely to be limited due to various significant support areas, namely the monthly and weekly PPs and the 100-hour SMA near 9.3670 and the 200-hour SMA and the 50.0% Fibonacci retracement at 9.34.
Meanwhile, given the diminishing range of the senior channel, the rate could depreciate in the medium term to approach its bottom boundary in the 9.27/29 area.