EUR/NOK to move back to 11.00 on a three-month view – Rabobank

Since the spring, the value of the NOK has improved. Economists at Rabobank analyze Krone’s outlook.

Selling EUR/NOK on rallies into the 100-DMA at 11.54 

Failure to break below the 200-DMA at EUR/NOK 11.15 has resulted in a pop higher in the currency pair. The 100-DMA is positioned at the 11.54 level. We favour selling EUR/NOK on rallies into this resistance level in anticipation of a hawkish tone from the central bank on Thursday. 

We expect a move back to EUR/NOK 11.00 on a three-month view on the assumption that the Norges Bank’s rate hiking cycle persists into the autumn.