The EUR/NOK is heading downwards towards its support level

The euro to Norwegian krone exchange rate is heading downwards towards its support level. The pair is expected to once again reach its support by the end of the month as bearish investors take advantage of the euro’s weakness. The move should further push the 50-day moving average even lower and closer to the 200-day moving average. Bearish investors are hoping to run away this time and break past the pair’s support level as they try to recover their major losses from earlier this year. The Norwegian krone should take control of the euro as the risk sensitivity in the market dies. As reported last week, the bleak update of the United States Federal Reserve has shifted the dynamics in the global market, causing risk-linked currencies such as the euro to falter against other currencies in the market. And as for the Norwegian krone, the prices of crude oil in the commodity market is preventing it from buckling against the single currencies.