Technical Analysis – EURNOK may have more weakness in store after 2 ½-month lows
December 19, 2019 2:26 pm
EURNOK dived to a 2 ½-month low of 9.95 on Thursday and towards the 38.2% Fibonacci of the upleg from 9.41 to 10.31.
More downside could prevail in the short-term as the RSI and the MACD continue to move south in the bearish area but the price needs to close decisively below the 38.2% Fibonacci of 9.96 to trigger a steeper sell-off, probably towards the 50% Fibonacci of 9.86 and the 200-day simple moving average (SMA). Retracing lower and beneath the previous low of 9.81, the 61.8% Fibonacci of 9.75 will come next in defense.
In case of an upside reversal, the bulls would aim for the 10.09 barrier which coincides with the 23.6% Fibonacci mark. Running above the shorter-term 20- and 50-day SMAs, the door would open for the 10.19 resistance area and then for the 10.25 mark before the spotlight turns to the record high of 10.31.
As regards the medium-term timeframe, the outlook switched to neutral from positive following the decline under the 23.6% Fibonacci of 10.09.
Summarizing, EURNOK may have more losses in store in the short-term, with traders waiting for a closure below 9.96 to confirm negative signals.
EURNOK dived to a 2 ½-month low of 9.95 on Thursday and towards the 38.2% Fibonacci of the upleg from 9.41 to 10.31.
More downside could prevail in the short-term as the RSI and the MACD continue to move south in the bearish area but the price needs to close decisively below the 38.2% Fibonacci of 9.96 to trigger a steeper sell-off, probably towards the 50% Fibonacci of 9.86 and the 200-day simple moving average (SMA). Retracing lower and beneath the previous low of 9.81, the 61.8% Fibonacci of 9.75 will come next in defense.
In case of an upside reversal, the bulls would aim for the 10.09 barrier which coincides with the 23.6% Fibonacci mark. Running above the shorter-term 20- and 50-day SMAs, the door would open for the 10.19 resistance area and then for the 10.25 mark before the spotlight turns to the record high of 10.31.
As regards the medium-term timeframe, the outlook switched to neutral from positive following the decline under the 23.6% Fibonacci of 10.09.
Summarizing, EURNOK may have more losses in store in the short-term, with traders waiting for a closure below 9.96 to confirm negative signals.
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