EUR/NOK off daily highs, back around 9.0500

After reaching session highs near 9.1000, EUR/NOK has now reverted the initial upbeat mood and has returned to the red territory near 9.0500.

EUR/NOK offered post-CPI

The strength around the Norwegian Krone has dwindle somewhat in recent sessions, prompting the cross to leave YTD lows in the 8.90 area following a steady stance by the Norges Bank at its meeting, the recovery in crude oil prices and strong domestic fundamentals.

Today’s lower than expected inflation figures have collaborated with the initial selling pressure in NOK, although it seems to have lacked of follow through. In fact Norwegian consumer prices have risen at a monthly 0.3% in September and 3.6% over the last twelve month, coming in below estimates at 0.7% and 4.0%, respectively.

In the meantime, the Barrel of Brent crude is now advancing further north of the $52.00 mark, shrugging off Friday’s pullback and on its way to challenge recent highs in levels just below $53.00.

EUR/NOK significant levels

As of writing the cross is losing 0.12% at 9.0539 facing the next support at 8.8937 (2016 low Oct.4) followed by 8.8167 (low Jul.16 2015) and then 8.6021 (low Jun.29 2015). On the flipside a break above 9.1059 (20-day sma) would aim for 9.1501 (high Sep.26) would open the door to 9.2008 (20-day sma) and then 9.2320 (55-day sma).