Forex Market: EUR/NOK daily forecast

During yesterday’s trading session EUR/NOK traded within the range of 8.2200-8.2530 and closed at 8.2253.

At 06:22 GMT today EUR/NOK was losing 0.02% for the day to trade at 8.2222. The pair touched a daily low at 8.2175 at 06:00 GMT.

Fundamental view

The final reading of the harmonized index of consumer prices (HICP) in the euro zone probably remained intact from the preliminary reading of 0.5%, according to the median estimate by experts. The preliminary reading was the weakest since October 2009. The HICP is used to measure and compare inflation between Member States. It is used for further evaluation of inflation, according to Art . 121 of the Amsterdams Agreement and directives of the European Central Bank to achieve price stability and the implementation of monetary policy. HICP is calculated based on international harmonized standards adopted by Member States. This is the percentage change compared to the corresponding month of the previous year.

Eurostat is scheduled to release the official report at 09:00 GMT. A weaker-than-expected reading may prompt the ECB to ease monetary policy, to avoid risks of deflation. However, higher-than-expected reading will probably relieve pressure on central banks officials and they will not need to take imminent actions.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/NOK manages to breach the first resistance level at 8.2456, it will probably continue up to test 8.2658. In case the second key resistance is broken, the pair will probably attempt to advance to 8.2785.

If EUR/NOK manages to breach the first key support at 8.2125, it will probably continue to slide and test 8.1998. With this second key support broken, the movement to the downside will probably continue to 8.1795.