EUR/NOK sinks to lows post-CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The Norwegian krone is now gathering further traction vs. the single currency, dragging EUR/NOK to lows around the 9.3400 handle.

    EUR/NOK weaker on CPI figures

    NOK saw its demand accelerated after inflation figures in the Nordic economy has surpassed expectations during February. In fact, consumer prices have risen at an annualized pace of 3.1% (vs. 3.0% exp) and 0.5% inter-month (vs. 0.4% exp.). Core CPI has also followed suit, up 1.0% from the previous 0.1% contraction.

    In addition, the strong rebound in crude oil prices has also been lending support to NOK, collaborating with the downside.

    The cross is testing 3-day lows around 9.3400 and trading at shouting distance from YTD troughs at 9.3052 posted on Monday.

    EUR/NOK significant levels

    As of writing the cross is retreating 0.27% at 9.3544 facing the next support at 9.3052 (2016 lows Mar.7) followed by 9.1220 (monthly low Sep.10 2015) and then 9.0832 (monthly low Dec.2). On the other hand, a breakout of 9.4108 (23.6% Fibo of 9.7505-9.3052) would aim for 9.4552 (100-day sma) and finally 9.5418 (55-day sma).
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