EUR/NOK 1H Chart: Bullish in medium termAfter bouncing off the senior channel on January 29, the common European currency began a new up-wave and formed an ascending channel along the way. The rate tested this junior pattern two weeks ago prior to edging lower down to the 6.68 area where it is trading today.
A closer look at the pair’s previous movement demonstrates that the Euro has been successful at respecting channels. Thus, it is likely that the aforementioned junior channel is able to constrain the rate next week, as well. A possible target for the following sessions could be the upper boundary of a three-month channel in the 9.76/78 territory. The rate’s subsequent movement is likewise expected northwards in line with the senior channel.
On the other hand, if the 55– and 100-hour SMAs near 9.6710 do not hold, the pair might be poised for a fall down to the senior channel circa 9.60/62.
