BUZZ-COMMENT-November highs in sight for NOK, but gains will be hard-fought

Feb 10 (Reuters) - A third consecutive positive week for the Norwegian crown versus the euro could prove significant if the NOK is to extend its gains to the November 11.5200 high.

While the charts are looking favourable towards the crown, the fundamental backdrop is far from positive. The latest Trump tariff news has impacted market sentiment, and this is likely to drag on the NOK on Monday.

EUR/NOK fell 1.4% last week, dropping below the Ichimoku cloud base, 11.6345. The cloud base now provides resistance along with the cloud top at 11.7040.

The cloud top is backed up by the 10-week moving average and a weekly trend resistance line, 11.7270 and 11.7785, respectively.

A drop under the 100-week moving average, 11.6040, early on Monday has added to the bearish outlook.

Fourteen-week momentum readings remain negative and the weekly relative strength indicator is confirming the latest price drop.

The November low is a viable target, but broader market sentiment might prove to be a stronger driver of EUR/NOK and, as such, further NOK gains are likely to be hardfought.

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