Loading...
by Charalambos Pissouros

USD/NOK Exits a Sideways Range

USD/NOK tumbled on Friday, breaking below 8.6780, the lower boundary of the sideways range that was containing most of the price action since May 2nd. The rate hit support near 8.6080, a hurdle marked by the lows of April 30th and May 1st, and today it rebounded. However, as long as the pair is trading below the lower end of the aforementioned range, we will hold a bearish stance and we would expect the sellers to jump back into the action sometime soon.

The current recovery may continue for a while more, perhaps for the rate to challenge the 8.6780 zone as a resistance this time. That said, the bears could take advantage of that zone and perhaps pull the trigger for another test near 8.6080. If they are not willing to hit the brakes near 8.6080, we may see the slide extending towards the 8.5750 zone, defined by the inside swing high of April 23rd.

Taking a look at our short-term oscillators, we see that the RSI rebounded from near its 30 line and now looks to be heading towards 50, while the MACD, although below both its zero and trigger lines, shows signs of bottoming. These indicators support our view that the current recovery may continue for a while more, before the bears decide to take charge again.

In order to switch back to neutral, we would like to see a decisive break above 8.7110. Such a move would also bring the rate above the tentative downside resistance line drawn from the high of May 31st, and may confirm the rate’s return within the range. The pair could then travel towards the 8.7430 area, the break of which may allow further recovery, perhaps towards the 8.7680 obstacle, defined by the high of June 3rd.

USD/NOK 4-hour chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

70% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT