Downtrend could extend on a break below 11.59/11.55 – SocGen

Economists at Société Générale analyze EUR/NOK technical outlook.

Lack of clear direction

EUR/NOK recently formed a lower high at 12.00 as compared to the one in May near 12.10 and subsequently breached a steeper ascending trend line. A short-term pullback has led it towards 200-DMA near 11.59/11.55 which is an important support. 

Daily MACD has turned flat with crisscross moves around the equilibrium line denoting lack of clear direction. 

If the pair breaks below 11.59/11.55, the downtrend could extend towards projections of 11.42 and 11.30.