By Yan Petters – Some of you have already noticed it, but for those of you who have not, you may want to pay attention. The EUR/NOK pair has dropped over 3,000 pips during the last month! With no signs of halting, this appears to be one of the sharpest trends in the market.
• The chart below is the EUR/NOK 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI).
• All 3, Slow Stochastic, MACD and the RSI are showing a negative slope, which indicates that the momentum is clearly bearish.
• Furthermore, the MACD and the RSI show a very accurate bearish channel, which also indicates that the pair is in the midst of a strong bearish trend.
• The pair has now reached a significant support level at the 8.1550 price.
• If the pair will manage to breach though, another sharp drop could be expected.
• However, be cautious, if the pair will fail to breach this level, a bullish correction might be initiated as a result.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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