Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

EUR/USD and EUR/NOK on diverging paths

EUR/USD makes lower lows as momentum seeks to re-assert itself; a solid rally for EUR/NOK might carry some risks as volatility ticks up and different directions for Euro against USD and NOK might provide opportunities.

Source: Bloomberg

EUR/USD technical outlook

EUR/USD made a fresh two-year low yesterday as it broke below recent lows and a descending trendline.

The consistently of making lower lows and lower highs could suggest that a bearish trend environment remains in play.

The last few sessions have seen the price move back below the ten-day simple moving average (SMA) and this could indicate that short-term bearish momentum has re-accelerated.

A bearish triple moving average (TMA) formation requires the price to be below the short term SMA, the latter to be below the medium term SMA and the medium term SMA to be below the long term SMA. All SMAs also need to have a negative gradient.

The 10-, 21-, 34-, 55, 100- and 200-day SMAs all lie above the price and have negative gradients. Using any combination of these SMAs they are all in correct order to meet the criteria for a TMA.

Nearby resistance could be at the pivot point of 1.0758. Further up, there might a resistance zone at 1.0923 – 1.0945, where there are a couple of pivot points, a previous high and the 34- SMA.

A descending trendline is also near the 55-day SMA near 1.1030, which may offer resistance.

The March 2020 low of 1.0638 could provide support and a break below there might open up a run toward the January 2017 low of 1.0340. A move below 1.0340 would be the lowest level EUR/USD has traded at since 2003.

Source: TradingView

EUR/NOK technical analysis

EUR/NOK has rallied over 2% in the last few days, piercing several resistance levels.
On this move, it was unable to close above the peak seen earlier this month at 9.7645 and the 55-day simple moving average (SMA), currently at 9.7693. These levels may continue to offer resistance.

The move did break above the upper band of the 21-day simple moving average (SMA) based Bollinger Band and closed outside it. If a close is observed back inside the band, it might signal a reversal.

The width of the bands has begun to expand after a period of consolidation saw them narrow. This may indicate accelerating volatility for the cross rate.

Support could be at the prior resistance level of 9.7201 or the 5- and 21-day SMAs, currently at 9.6761 and 9.5914 respectively.

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. This information Advice given in this article is general in nature and is not intended to influence any person’s decisions about investing or financial products.

The material on this page does not contain a record of IG’s trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.