By Dan Eduard – The EUR/NOK pair has seen some heavy volatility over the last several weeks. After dropping as low as 7.8330 in the beginning of September, the cross has steadily gone up, and is currently trading around the 8.0420 level. As will be shown through a number of technical indicators, the euro is likely to enter into a bearish trend against its Norwegian counterpart in the near future.
We will be looking at the daily chart for EUR/NOK provided by Forexyard. The technical indicators we are using are the Relative Strength Index (RSI), Williams Percent Range and Stochastic Slow.
1. As we can see, the RSI is currently slightly above the 70 level. Typically, when a currency pair goes above 70, that pair is in overbought territory, meaning a downward correction is likely to occur.
2. The Williams Percent Range is showing a similar trend. Currently, the indicator is around the -10 level. Anything above -20 is usually seen as a sign of impending bearish movement.
3. Finally, the Stochastic Slow has formed a bearish cross right above the upper support line. Taking this into account, along with other indicators already mentioned, traders can be fairly certain that the pair will experience downward pressure soon.
Forex Market Analysis provided by ForexYard.
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