USD/NOK has been trading in a consolidative manner since yesterday, between the 9.230 and 9.295 barriers. That said, on Tuesday, the pair rebounded from the uptrend line drawn from the low of January 2nd and as long as it continues to trade above that line, we would consider the short-term outlook to be positive.
But, before we get confident on decent advances, we would like to see a clear break above 9.295. Such a move may initially aim for the 9.380 zone, the break of which could extend the recovery towards the 9.440 barrier, marked by the peak of March 2nd. If the bulls are not willing to stop there either, we may see them putting the 9.498 zone on their radars. That zone is defined as a resistance by the high of February 28th.
Looking at our short-term oscillators, we see that the RSI rebounded from its 30 line and now looks to be slowly drifting towards its 50 line, while the MACD has bottomed within its negative territory and now lies above its trigger line. Both indicators suggest that the rate may start picking upside speed soon, which supports the idea of a rebound in this exchange rate.
In order to start examining the case of a trend reversal, we would like to see a decisive dip below 9.175. This would confirm the break below the aforementioned uptrend line and may initially allow declines towards the lows of January 28th and 29th, at around 9.107. If the bears are strong enough to overcome that hurdle as well, then we may see them pushing towards the 9.028 area, marked by the inside swing high of January 23rd.
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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.