Kumowizard

EURNOK - Should it follow EURSEK?

Short
FX:EURNOK   Euro / Norwegian Krone
1
Well it may dip as well, but the situation for NOK is a lot harder than for SEK . The reason is simple: further drop in Oil Price. As Norway is Europe Oil prodicer country and its economy is really dependent on Oil prices, for EURNOK to be able to come lower, Oil Price should show some signs of correction from the heavily oversold levels.

Daily: Consolidation after the very extreme moves between 16-22/December. Tenkan and Kijun are a bit confusing as while Tenkan is below Kijun Sen, due to the one day spike Kijun still points up. Chikou Span is hitting Price candles as Price has been moving sideaway in a wide range of 9,00 - 9,21.
The Key levels is 9,00. It needs to break below to give sell signals and start moving lower towards 8,55-8,60.
As I said above, for the reversal to happen Oil should go corrective up and/or ECB has to deliver QE to weaken EUR

4 Hrs: The picture is neutral on 4 Hrs time frame. Very thin Kumo because of consolidation, all averages are flat (Senkou lines, Kijun, 100 WMA ). Actually Price is attacking all flat lines together now from the top side with Slow Stoch Sell signal. Theoretically you can try a short here with stop above 9,20 / tgt at 8,98-9,00.


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