EUR/NOK pulls back from multi-year highs - Société Générale

EUR/NOK is retreating after failing to break above the key resistance zone of 12.05-12.12, marking last year's highs. The pair has established a short-term floor near 11.43 but lacks momentum for a strong rebound. With the 200-DMA at 11.71-11.73 acting as resistance, a sustained failure to breach this level could see further downside toward the April low at 11.25, Société Générale's FX analysts note.

Failure at 12.05-12.12 caps EUR/NOK rally

"EUR/NOK failed to establish itself beyond last year highs and graphical hurdle of 12.05/12.12 resulting in a gradual pullback. It has carved out an interim low near 11.43. The pair is evolving within a brief pause however signals of a large up move are not yet visible."

"The 200-DMA at 11.71/11.73 is a short-term resistance. Inability to cross this hurdle can lead to persistence in decline; projections at 11.31/11.25, which also represents April low could be the next support zone."