EUR/NOK challenging session lows near 9.7200 on Brent gains

• The cross reverts part of the weekly rally and drops to the 9.7200 area.
• The better tone in Brent crude prices help the Norwegian Krone.
• Norway’s unemployment rate stayed put at 4.0% during September.

The decline in the Norwegian Krone appears to be losing some momentum on Wednesday, as EUR/NOK manages to drop to the area of 9.7200.

EUR/NOK weaker on oil, data

NOK manages to attract some attention again amidst the strong rebound in prices of the European reference Brent crude, which is up nearly 2% around $63.60 per barrel, reverting part of the recent steep pullback.

It is worth mentioning that the barrel of Brent crude is down around 25% since October tops, coincident with the rally in the cross from lows near 9.41 the figure to yesterday’s tops near 9.77.

In addition, NOK is deriving support after the unemployment rate in the Scandinavian economy stayed put at 4.0% for the month of September, matching initial estimates and adding to the already solid domestic economic fundamentals.

EUR/NOK significant levels

As of writing the cross is down 0.27% at 9.7247 and a breakdown of 9.6301 (10-day SMA) would open the door to 9.5692 (200-day SMA) and then 9.5006 (low Nov.8). On the other hand, the next up barrier aligns at 9.7693 (high Nov.20) seconded by 9.7806 (high Aug.28) and finally 9.8079 (high Sep.7).