© Dukascopy Bank SA
The single European currency is highly likely to continue tumbling against the strengthening Norwegian Krone. First of all, the pair has recently consolidated under a formidable cluster of support line, which held it under intense upside pressure over the first two weeks of May, between 9.2750 and 9.36. Now the focus is turning to the monthly S2 and the April low, with both lying near 9.13. Success here would pave the way for an additional sell-off in the direction of the round 9.00 level. There the bears are going to meet the psychological upward momentum, pattern's lower edge and monthly S3. On the bullish side, however, the SWFX market is 66% on the Euro and this currency is oversold now.
© Dukascopy Bank SA