EURNOK opened positive on Monday, continuing last week’s remarkable rally to two-month high of 10.27.
The RSI is still sloping upwards, but it is already above its 70 overbought mark, hinting that downside corrections or some stabilization is possible in the near-term, with the fast Stochastics which reversed north again endorsing this view as well.
On the way up, there is a tall wall between 10.27 and the multi-year high of 10.31 and only a decisive close above it could trigger fresh buying interest probably towards 10.60 and 11.00.
Otherwise, the bears could take over to retest the 10.19-10.13 restrictive area which includes the 61.8% Fibonacci of the downleg from 10.31 to 9.75. Beneath that, traders could also search for support near the 50% Fibonacci of 10.06, while a closing price below 10.00, the 38.2% Fibonacci and the 50-day simple moving average (SMA) could prove more harmful for the market.
Meanwhile in the medium-term picture, the pair is in neutral mode between 10.31 and 9.75 and only a violation at these boundaries would shift the outlook accordingly.
In brief, EURNOK is holding a cautiously bullish short-term bias, with the focus shifting now to the 10.27-10.31 resistance zone.
