© Dukascopy Bank SA
The common
European currency is depreciating against the Norwegian Krona in a descending
channel pattern on a short term. Meanwhile, the currency rate is trading in a
medium-term ascending channel pattern. The short term channel is a
representation of the rates bounce off from a 50.00% Fibonacci retracement
level that is located in the middle of the pattern at 9.1130. The relevant
Fibonacci retracement levels on this pair are measured by connecting the 2014
high and 2015 low levels. The pair is heading for the lower trend line of the medium-term
channel, and it is possible that it will rebound against it. However, the
currency pair is already oversold, as 72% of open SWFX positions are short.
© Dukascopy Bank SA