Forex Market: EUR/NOK daily forecast

During Friday’s trading session EUR/NOK traded within the range of 8.1089-8.1480 and closed at 8.1153.

At 6:25 GMT today EUR/NOK was gaining 0.09% for the day to trade at 8.1228. The pair touched a daily high at 8.1259 at 6:00 GMT.

Fundamental view

Euro zone

The final annualized reading of the harmonized index of consumer prices (HICP) in the Euro zone probably rose 0.5 % in May, matching the preliminary reading estimated on June 3rd. 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 Amsterdam’s 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 continue easing monetary policy, while a higher-than-expected reading will probably relieve pressure on central bank’s officials and they will not need to take imminent actions.

Norway

At 8:00 GMT Statistics Norway is to report on nation’s trade balance during May. The surplus on Norway’s trade balance was 31.60 billion NOK during April. As an indicator the trade balance reflects the difference in value between exported and imported goods during the respective period. The External Merchandise Trade encompasses crude oil, natural gas, as well as ships and oil platforms alongside “traditional goods”. Export demand has a direct link to demand for the national currency and also causes an impact on levels of production. In case Norway’s trade balance surplus expanded more than projected last month, this would have a bullish effect on the krone.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/NOK manages to breach the first resistance level at 8.1391, it will probably continue up to test 8.1632. In case the second key resistance is broken, the pair will probably attempt to advance to 8.1783.

If EUR/NOK manages to breach the first key support at 8.1000, it will probably continue to slide and test 8.0850. With this second key support broken, the movement to the downside will probably continue to 8.0610.