Loading...
by Darius Anucauskas

USD/NOK Keeps Pushing Higher

USD/NOK continues to trade above its medium-term upside support line, taken from the low of September 26th. After another test of that line on April 17th, the pair had set sail north and keeps on traveling in that direction. Of course, minor downside corrections do occur, but overall, it looks like the rate might continue with its journey higher, at least for now.

USD/NOK is currently stuck slightly below its key resistance zone, near the 8.700 barrier, which previously acted as good resistance on April 25th and 26th. If that barrier fails to withhold the bull-pressure and we see a daily candle closing above it, this could be a good sign for more bulls to join in and drive the rate further in the upwards direction, potentially bypassing the 8.728 obstacle and hitting the 8.752 area, marked by the high of March 11th. This is where the pair might stall for a while, or even retrace back down a bit. But if the bears are still feeling weak, the bulls could take over again and push the rate above the 8.752 barrier and target the 8.820 level, which is near the highs of December 26th and March 8th.

Taking a quick glance at our oscillators, the RSI and the MACD, both seem to be in support of the upside scenario, at least for now. The RSI is above 50 and still points higher. The MACD also looks promising for the bulls, as it remains pointing higher, by sitting above zero and the trigger line.

Alternatively, if by any chance, USD/NOK travels back below the 8.613 support zone, this could raise concerns in the bull-bloc over the pair’s short-term upside potential. More sellers could then enter the game and drag the rate to the 8.559 obstacle, a break of which may open the door to the 8.520 hurdle, marked by the highs of April 21st and 22nd. Slightly below that runs the aforementioned medium-term upside line, which, once again, could stop USD/NOK from moving lower.

USDNOK daily

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.

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. (https://www.jfdbank.com/en/legal/risk-disclosure)

Copyright 2019 JFD Group Ltd.

 

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