EUR/NOK eyes 8.80 in 6-month – Danske Bank

Senior Analyst at Danske Bank Pernille Henneberg remains bullish on the Norwegian Krone, expecting to drag EUR/NOK to the 8.80 area in the medium term.

Key Quotes

“EUR/NOK and EUR/SEK traded mostly sideways on Friday. Both Scandi FX crosses are in stretched territory after the recent strengthening of NOK and SEK”.

“In particular, the NOK is very overbought versus both USD and EUR according to our short term financial model. EUR/NOK continued to fluctuate at critical technical support levels around 8.90 on Friday. Strategically, we like to be long NOK, but, from a tactical perspective, entry levels are likely to improve”.

“We target EUR/NOK at 8.80 and 8.70 at 6M and 12M, respectively”.

“For the SEK, we have already seen significant strengthening versus the EUR since the beginning of the year and think 9.50 will act as an attractor for the cross near term. Tactically, we would look to sell EUR/SEK on rallies”.