A few highlighted charts where important technical events are unfolding. Do note that we are composing this piece during an ECB press conference, President Draghi’s last, though we don’t expect major surprises to emerge as Draghi may instead choose to use the presser as a figurative handing of the baton to the EU and the need for fiscal policy to counter weak economic growth as the ECB toolbox is effectively exhausted.
EURNOK – more to come?
This is a follow up from last week’s chart highlights as EURNOK quickly jumped to new highs recently above 10.06 and only found resistance just below 10.25. Support for the move extending would come from a sell-off in oil (quite the opposite over the last couple of sessions), a weakening of the global growth outlook and/or weakening risk appetite. Seasonally, NOK is often weak into year end. Technically, a break rejection only arrives with a close back down through 10.06, and arguable below 10.00. The first major Fibo retracement level comes in around 10.075. Today’s Norges Bank meeting produced little volatility as the short statement brought no new forward guidance.