Chart Book | Chart of the day: Oil slicks in many woods

The price of crude oil is at its lowest in four years, having tumbled for five consecutive months. Cracks are appearing in a series of markets as the implications sink in, and so oil-related currencies like the Russian rouble and the Norwegian krone are our focus today. The krone is at its weakest against both the US dollar and the euro in five years and implied volatility on euro/krone calls has almost doubled since September. At the moment there is nothing to suggest that the long-term rally, which started in 2012, cannot reach its first measured target at 8.735, then continue to the next one at 8.925 despite retracement resistance at 8.765.

Nicole Elliott is a technical analyst