EUR/NOK traded sharply higher yesterday, breaking above the 9.790 barrier, which provided resistance between Oct. 28 and Nov. 1. However, the advance was stopped near the 9.880 zones, slightly below the downside resistance line taken from the high of Aug. 20, and then, the rate pulled back somewhat. As long as the rate stays below that line, we would consider the near-term outlook rather negative.
However, bearing in mind that the pair is also trading above a new upside line, taken from the low of Oct. 20, we prefer to wait for a dip below 9.710 before we get confident on a trend continuation. Such a dip could confirm the break below that upside line and may initially pave the way towards the low of Oct. 20, at 9.639. Another pause, below 9.639, would confirm a forthcoming lower low on the daily chart and could allow extensions towards the 9.554 area, defined as a support by the low of Apr. 22, 2019.
Shifting attention to our short-term oscillators, we see that the RSI turned down after hitting resistance near 70, while the MACD, although above both it's zero and trigger lines, shows signs of topping as well. Both indicators detect slowing upside speed and support the notion for some further pullback for now.
Outlook
To examine whether the bulls have gained the upper hand, we would like to see a move above 9.900. This could signal the break above the downside line drawn from the high of Aug. 20 and may allow advances towards the peak of Oct. 7, at 9.968. If that barrier fails to hold, its break could see scope for extensions towards the high of Oct. 4, at 10.040.