EUR/NOK now appears oversold – Danske Bank

Senior Analyst at Danske Bank Pernille Henneberg noted the oversold condition of the cross in response to the recent price action.

Key Quotes

“After yesterday’s fall, EUR/NOK is now fluctuating at the critical technical support levels that we have highlighted over the last days”.

“While a sustained break below 8.9150 (and not least 8.90) would signal to us more near-term NOK strength, we prefer a more cautious short-term stance”.

“Moreover, our short-term financial models, which have historically been a reliable leading indicator for short-term corrections, suggest that EUR/NOK is oversold. Strategically, we like to be long the NOK, yet, tactically, entry levels are likely to improve. We would sell rallies below 8.98”.