For the grown and sexy who wish to venture out of the major currency pairs, check out this USD/NOK setup.
On the daily, the pair is currently testing major support - its previous swing low. You can see there’s bullish divergence where price’s lows are drifting lower while the oscillator’s lows are drifting higher.
Zooming into the 8-hour chart, the bullish divergence is more obvious.
One could buy here at market price of 6.0850 or wait for price to retest its swing low 6.0650. The .50% Fibonacci retracement level looks to be a nice profit target since its also near the pair’s most recent high and I would expect some resistance there.
ForexNinja, Thanks for the heads up on USD/NOK. I have been closely following the Norwegian economy lately and as Oslo surpasses Tokyo as the most expensive city in the world (with oil,) you can imagine what the Norwegian Central bank is struggling with- fighting inflation. I beleive the NOK will be the next carry trade story. However, the broker I use does not have any NOK pairs. Do U know other brokers that carry the NOK pairs?
USD/NOK was in a strong and consistent uptrend during the recent months that buyers were successful in achieving the highest price of 7.8519.The price has stopped from more ascend by reaching to the resistance edge of Up Channel and a top price was created on the resistance line by the buyers retreat.There are a Shooting Star and Hanging Man candlestick patterns in top price of 7.8519 that warns the potential for formation of a successful top price and Vulnerability of ascending trend for buyers. With closing of the next bearish candle, this signal is fixed.
According to the formed price movements in the chart, there is a Crab harmonic pattern between the bottom price of 5.2129 and top price of 7.8519 that warns about descending of the price with completion of this pattern ending point.RSI indicator in weekly time frame is in saturation buy area and warns about descending of price according to the next cycle during the next weeks.Generally according to the formed signs in price chart, until the top price of 7.8519 is preserved, there is a potential for reformation and descending of the price in this currency pair.
