Intraday Comment: NOK Under Pressure, Again

• USD/NOK and EUR/NOK saw some profit-taking on Friday after their tremendous rise during the week, but were back on the uptrend this morning. The pair both rose with no apparent trigger in the news. There will be some key data out at the end of the week, when unemployment for August and retail sales for July will be released. Unemployment is expected to fall slightly and retail sales rise, which could help to restore some faith in the NOK, but sentiment towards the currency seems negative.

• EUR/NOK moved higher during the European morning, after rebounding off the July highs at 8.0372 (S1). Currently the pair is finding resistance from the 8.0880 (R1) level. A break above that would trigger bullish extensions towards the recent highs of 8.1620 (R2). It is worth noting that both ADX and RSI confirms the positive picture of the rate, since ADX value is above 20 with +DI lying above –DI and RSI just poked its nose above its downward sloping line.

• Support: Support is found at the 8.0372 (S1), followed by the 7.9667 (S2) and the 7.9104 (S3) respectively.

• Resistance: Resistance levels are the 8.0880 (R1), 8.1620 (R2) and 8.2461 (R3) (weekly chart).
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