As a result of a bounce off from the upper trend line of a long term ascending channel pattern the common European currency has formed a medium term descending channel pattern against the Norwegian Krona. The currency exchange rate is heading for the combined support of the dominant channel's lower trend line and the 38.20% Fibonacci retracement level near the 9.30 mark. The Fibonacci retracement levels for this pair are measured by connecting the 2014 high and 2015 low levels. Moreover, the 200-period SMA is closing in on the before mentioned support cluster. A surge hypothesis is also supported by the fact that the pair is oversold, as 74% of open SWFX positions are already short.
| Level | Rationale | Indicator | 4H | 1D | 1W | |||
| R4 | 9.54 | 23.60% Fibo | MACD (12; 26; 9) | Sell | Buy | Buy | ||
| R3 | 9.46 | Weekly PP; monthly R1 | RSI (14) | Neutral | Neutral | Neutral | ||
| R2 | 9.41/42 | Trend line; 55-period SMA | Stochastic (5; 3; 3) | Sell | Sell | Sell | ||
| R1 | 9.37 | 100-period SMA | ADX (14) | Neutral | Neutral | Neutral | ||
| S1 | 9.34 | Weekly S1 | CCI (14) | Neutral | Neutral | Sell | ||
| S2 | 9.30/26 | 38.20%; trends; 200-p SMA; month's PP | AROON (14) | Buy | Buy | Buy | ||
| S3 | 9.22 | Weekly S2 | Alligator (13; 8; 5) | Sell | Buy | Buy | ||
| S4 | 9.17 | Monthly S1 | SAR (0.02; 0.2) | Sell | Sell | Buy | ||
| Aggregate | ↘ | → | ↗ |