Forex Market: EUR/NOK daily trading forecast

Yesterday’s trade saw EUR/NOK within the range of 9.0252-9.1624. The pair closed at 9.1153, gaining 0.25% on a daily basis.

At 7:26 GMT today EUR/NOK was down 0.17% for the day to trade at 9.0988. The pair touched a daily low at 9.0810.

Fundamentals

Euro zone

Services PMIs

Services sector in Spain probably registered higher activity in December, with the respective Purchasing Managers Index climbing to 52.9, according to expectations, from 52.7 in November. The latter has been the lowest PMI value since November 2013, when the indicator was reported at 51.5. The official value for December is due out at 8:15 GMT.

Activity in Italys sector of services probably remained little changed in December, with the corresponding PMI coming in at a reading of 51.7, as expected by experts, from 51.8 in the prior month. The latter has been the highest PMI value since July, when the index stood at 52.8. Markit Economics is expected to release the official data at 8:45 GMT.

Frances final services PMI probably remained in the zone of contraction for a fourth consecutive month during December, while confirming the preliminary PMI reading of 49.8, which was reported on December 16th. In November the final services PMI was estimated at 47.9, or the lowest since February, when the indicator came in at 47.2. The official reading is due out at 8:50 GMT.

The final reading of German services PMI probably confirmed the preliminary value for December, with the index coming in at 51.4, according to market expectations. If confirmed, this would be the lowest PMI reading since July 2013, when the gauge was reported at 51.3. In November the final services PMI was registered at 52.1. The index is based on data collected from a representative panel of more than 500 companies, operating in Germanys services sector, and gauges variables such as sales, employment, inventories and prices. Markit will release the official reading at 8:55 GMT.

The final services PMI in the Euro area probably also confirmed the preliminary value for December, with the index remaining at 51.9. In November the index came in at 51.1, according to final data, or the lowest level since December 2013, when it was registered at 51.0. The Purchasing Managers Index is based on a monthly survey, encompassing a sample of approximately 2 000 business entities, which represents private sector conditions in terms of new orders, output, employment, prices etc. National services data are included for Germany, France, Italy, Spain and the Republic of Ireland. Readings above the key level of 50.0 indicate optimism (increasing activity). Higher-than-expected values of any of the above mentioned PMIs would support demand for the common currency. The official reading is scheduled to be released at 9:00 GMT.

Norway

Manufacturing data

Activity in Norwegian manufacturing sector probably slowed down in December, with the respective PMI falling to 50.5 from 51.3 in the previous month. If so, this would be the third consecutive month of expansion, but also the lowest reading since September, when the gauge of activity was reported at 49.5. The index is based on a monthly survey carried out among 300 purchasing managers in the nation’s manufacturing industry and represents the weighted average of five different sub-gauges regarding the conditions in production, order books, stock of purchases, delivery time and workforce. A reading above the key level of 50.0 indicates optimism among respondents in the survey. However, lower-than-anticipated values of the PMI would have a bearish effect on the krone. The Norwegian Association of Purchasing and Logistics is scheduled to announce the results from the survey at 8:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 9.1010. In case EUR/NOK manages to breach the first resistance level at 9.1767, it will probably continue up to test 9.2382. In case the second key resistance is broken, the pair will probably attempt to advance to 9.3139.

If EUR/NOK manages to breach the first key support at 9.0395, it will probably continue to slide and test 8.9638. With this second key support broken, the movement to the downside will probably continue to 8.9023.

The mid-Pivot levels for today are as follows: M1 – 8.9331, M2 – 9.0017, M3 – 9.0703, M4 – 9.1389, M5 – 9.2075, M6 – 9.2761.

In weekly terms, the central pivot point is at 9.0839. The three key resistance levels are as follows: R1 – 9.1970, R2 – 9.2801, R3 – 9.3932. The three key support levels are: S1 – 9.0008, S2 – 8.8877, S3 – 8.8046.