Euro finding support against Norwegian krone

The EUR/NOK pair is a bit exotic, but it does give an insight as to how the Euro is doing in relative strength against crude oil. After all, the Norwegian krone is highly susceptible to pricing of crude oil, so this is an interesting and informative commodity pair. Looking at this chart, the EUR/NOK pair has tested the 10.05 level which was previous resistance, and now looks to be supportive.

The 50 day EMA is currently just below the trading over the last couple of days and hanging about the 10.05 NOK level. At this point, it looks as if the market is trying to form an inverted hammer, so a break above the highs from the trading session on Friday could send this market back towards the highs at the 10.28 level. Alternately, if the market was to break down below the 10 NOK level, then the market reaches down to the 9.88 level where the 200 day EMA sits. That being said though, the market is very likely to continue to grind higher based upon the overall trend, unless of course the Euro breaks down against currencies around the world in general. One of the greatest barometers will be the EUR/USD pair, which although bearish, isn’t necessarily breaking apart. At the same time, we would need to see serious strength in the crude oil market which has been basically range bound for the last several months although quite a bit of volatility has accompanied that. At this point, this is a market that can be used to trade directly, or to get an idea as to how to trade the Euro in general, and even crude oil as there are so many different inflections in this chart by the various bits and pieces that go in to pricing it.