EUR/NOK: Weak daily volatility should cap the upside - Natixis

In view of Micaella Feldstein, Research Analyst at Natixis, the weak daily volatility of EUR/NOK cross should cap the upside in the next days all the more so as the daily indicators have turned around and as the weekly stochastic is overbought.

Key Quotes

“A return above the resistance at 9.2390-9.2480 (monthly Bollinger moving average) sounds unlikely and we rather see a decline to a support at 9.0990 (daily Bollinger lower band). We’ll be careful as a break of this support would unleash added downside potential to 9.0680 (9-week moving average) ahead of 9.0280 (weekly Bollinger moving average). The resistances stand at 9.1720, at 9.20-9.2180, at 9.2390-9.25, at 9.3030 and at 9.3520.”