The EUR/NOK pair is showing classic signs of a resistance ceiling at the 11.47 mark, coinciding with the peak of a visible cyclical pattern on the monthly chart. This level has historically acted as a strong barrier, repelling bullish attempts.
The MACD indicator echoes this sentiment, with the histogram exhibiting a bearish crossover, potentially signaling diminishing upward momentum. Moreover, the stochastic oscillator is nearing overbought conditions, often a precursor to a reversal.
Based on these technical observations, a short position is considered, anticipating a retracement from this confluence of resistance. As always, traders should employ sound risk management, acknowledging that technical setups are probabilities, not certainties.