USD/NOK TRADING STRATEGY: BULLISH
- USD/NOK reached key resistance range: 8.7881-8.8244
- Dominant uptrend to continue – small pullback ahead?
- March 7 boost likely caused by pessimistic ECB outlook
See our free guide to learn how to use economic news in your trading strategy !
USD/NOK recently entered into a key resistance range between 8.78810-8.8244, opening the door for possible upward gains not seen since the end of 2015. The over-one percent boost on March 7 appears to be the result of the ECB’s gloomy outlook for growth and inflation for 2019-2020.
USD/NOK – Daily Chart
![Chart Showing USD/NOK](https://a.c-dn.net/b/2Czc9m/USDNOK-Technical-Analysis-Will-Pair-Hold-Above-8.7881-Barrier_body_Picture_4.png)
After skyrocketing into the new range, the pair may cool down and retreat from what appears to be an outsized gain. Negative RSI divergence is signaling the pair may have a brief pullback as upside momentum gradually cools. If the lower bound of the 8.7810-8.8244 range is tested and holds with a daily close above, it could signal a strong bullish bias in the pair.
USD/NOK – 30-Minute Chart
![Chart Shwoing USDNOK](https://a.c-dn.net/b/1Sj8cX/USDNOK-Technical-Analysis-Will-Pair-Hold-Above-8.7881-Barrier_body_Picture_9.png)
USD/NOK may find additional resolve if Norway’s GDP release tomorrow falls short of the 0.3 percent forecast. The four-hour chart shows the pair just on the edge of the lower bound of resistance. Having a daily close above this point would break a significant psychological barrier that kept the pair at bay in December and early January.
USD/NOK – Four-Hour Chart
![Chart Showing USDNOK](https://a.c-dn.net/b/17bDRA/USDNOK-Technical-Analysis-Will-Pair-Hold-Above-8.7881-Barrier_body_Picture_10.png)
USD/NOK – Daily Chart
![Chart shwoing USD/NOK](https://a.c-dn.net/b/2lmAQq/USDNOK-Technical-Analysis-Will-Pair-Hold-Above-8.7881-Barrier_body_Picture_11.png)
USD/NOK TRADING RESOURCES
- Join a free Q&A webinar and have your trading questions answered
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com
To contact Dimitri, use the comments section below or @ZabelinDimitri on Twitter