News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • Markets attempted pull risk trends out of their dive this past session, but sentiment (via $SPX) ultimately returned to its bearish course. Meanwhile, $EURUSD is consistent with its reversal. My video for today: https://www.dailyfx.com/forex/video/daily_news_report/2020/09/24/EURUSD-Extends-its-Dive-as-Late-Day-Selloff-Puts-SP-500-On-Verge-of-Correction.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/Q6JZKW2B1y
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.57%, while traders in EUR/GBP are at opposite extremes with 64.76%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JHNAiIgVLv
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.11% 🇪🇺EUR: -0.02% 🇯🇵JPY: -0.06% 🇨🇦CAD: -0.08% 🇳🇿NZD: -0.22% 🇦🇺AUD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/im3IxxDQ3y
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.15% US 500: 0.12% FTSE 100: -0.94% Germany 30: -1.00% France 40: -1.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/X6mMfIY6HW
  • The US Dollar, British Pound, and Euro will all be closely watching key geopolitical developments in North America (Powell testimony), the UK (Brexit talks) and Europe (EU summit). Get your market update from @ZabelinDimitri here:https://t.co/q4AJW6PTCu https://t.co/e0rwBFOnqX
  • RT @stlouisfed: The current recession has in many ways been more extreme than the Great Depression, yet the economy is projected to recover…
  • The US Dollar is struggling against ASEAN currencies despite weakness in the S&P 500. Capital remains flowing into emerging markets, keeping USD under pressure, could this change? Find out from @ddubrovskyFX here:https://t.co/nwhy3XhE74 https://t.co/ir20IjaJFu
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.06% Oil - US Crude: -0.97% Silver: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/H9676jm7CT
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.14% 🇪🇺EUR: 0.01% 🇨🇦CAD: -0.01% 🇯🇵JPY: -0.07% 🇳🇿NZD: -0.17% 🇦🇺AUD: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tm1u1cKErl
  • #Market Snapshot $AUDUSD sliding to fresh session-lows on the back of #MorganStanley's suggestion #IronOre prices will fall in Q4 Haven-linked $USD and $JPY pushing back to session-highs after dipping lower in early trade $Gold nudging slightly higher https://t.co/FsT9RIZYvR
The Ball Is Now On The US Dollar’s Side For USD/NOK

The Ball Is Now On The US Dollar’s Side For USD/NOK

2016-09-13 16:35:00
Quasar Elizundia, Currency Analyst
Share:

Searching For Concise Recommendations That Can Improve Your Trading Skills? Then Our Traits Of Successful Traders Guide Is An Excellent Material For You! Obtain Them HERE

Talking Points:

  • USD/NOK respecting support resistance
  • Potential USD strength for the cross
  • Bounce from resistance on symmetrical triangle pattern

Introduction:

During 2016, USD/NOK registered its all-time high level close to the exchange rate of 9.00 Norwegian Krones per U.S. Dollar. After this event, we have seen USD/NOK consolidate in a symmetrical triangle, registering both, higher lows and lower highs.

Let’s go to the charts so that we can get a better technical perspective of what has been happening with USD/NOK.

Short-Term Technical Outlook:

Analyzing the chart below, we can arrive at the conclusion that during the last month and a half, the technical picture was mainly portrayed by USD weakness. However, during this timeframe, USD/NOK on its search for lower prices faced a strong support between the 8.15 and 8.10 price area. During this past Thursday’s trading session, the cross attempted for the fourth time to break below the above mentioned area, an attempt that failed and placed the cross to bounce with strength back to higher price levels. As of the open of this trading week, USD/NOK continued its journey in search of higher price levels, nonetheless, during London’s session, the cross reached resistance levels delimited by the trend line drawn from the August 18 low and retraced. After retracing from resistance levels, USD/NOK found support at the downward trend line drawn from the July 27 high.

Therefore, by the short-term technical analysis previously mentioned, USD strength should be in the mind of traders, and the upsloping trend line from August 16 should act as a first potential target.

USD/NOK H2 Chart:

The Ball Is Now On The US Dollar’s Side For USD/NOK

Chart prepared by Quasar Elizundia

Bigger Picture:

USD/NOK D1 Chart:

The Ball Is Now On The US Dollar’s Side For USD/NOK

Chart prepared by Quasar Elizundia

As we can observe in the chart above, as we mentioned in the opening paragraph, USD/NOK has been trading in a symmetrical triangle during all of 2016. This triangle is drawn from the January high and the June low of 2016. During last week’s trading action, the cross reached support levels. Therefore, it should be expected that price action now is biased to the upside. However, traders should remain cautious, as price action has reached more times the support line of the above mentioned triangle pattern thus signaling that USD/NOK has been trading with more strength to the downside than compared to the upside.

Bottom Line:

Given that on our short term, the bias is to the upside and the bigger picture aligns with the short-term, traders should aim for potential bullish targets as the resistance trend line drawn from the August 16 low as a first target. In case that USD/NOK has a bullish break above the previously mentioned line, traders should target the resistance trend line from our symmetrical triangle.

However, as we mentioned before, trading action has favored mainly NOK on this pattern, therefore, traders should be cautious with bullish entries. Thus, a good handle of the risk-reward ratio on this trade idea should be crucial. A 1:2 risk-reward ratio should be the minimum consideration.

As an invalidation of this pattern, we would need to see price action to close out of the boundaries of the trend lines. In this scenario, bearish targets now should be in the mind of traders.

Are you interested in knowing what are the Top Trading Opportunities of 2016? CLICK HERE!

Are you a scalper? Then GSI is a tool that could help you on your short-term trades! Check it out HERE

Written by Quasar Elizundia

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES