After the recent peak around 6.45, the pair has lost momentum after last weeks Policy meeting in Norway. A rate-cut due 2014 is out of the question and we should expect a stronger Norwegian Krone (NOK) upcoming weeks and months.
Since last weeks sell-off, the pair has today retraced 61.8% of the move down and we should see a possible turnaround from current levels (below 6.40 area). Short USDNOK belove 6.40 (currently at 6.38+). Target is 6.20 and stop should be executed if the pair closes above 6.45.
Good morning, We were dead wrong regarding a possible top in USDNOK and took a stop as the pair closed above 6.45. The underlying strenght in USD is far stronger than what Norges Bank said about the Norwegian economy. However, we also believe entering a long position in USD from current levels gives us a poor risk/reward ratio. But we have to admit that the trend is up and we will await until we see a top with confirmation before entering the market again.
ACROFX
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Hi vlad.adrian,
Indeed, you are right that this pair is with no doubt very bullish. We are trying to catch a possible top, but also using fundamentals factors, which we believe supports a stronger Norwegian krone. This however, might take several days or weeks, but we believe the overall USD run is a bit stretched. Again, nothing in the charts which says or confirms a reversal for now.
We will see how this pair develops next couple of days and our strategy remains the same.
Thanx again for feedbacks and still have a lovely day!
vlad.adrian
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The sell off didn't have any follow through. I believe this pair is bullish
Sam0101
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same goes to use/jpy
vlad.adrian
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USDJPY is much more bullish than USDNOK
Sam0101
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yes, the bullish scene can be seen from now. Do u think essentially we will reach a new high this week before market close?
vlad.adrian
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Hard to say, it might go sideways for a while, but probably it will make a new high. USDNOK should go higher though next days.
Sam0101
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whats does the price action of USDJPY tells you for now?
vlad.adrian
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You have to understand that not every day, hour is important for a chart. I explained this to you on my NZDUSD chart. Commit to a position and stick with it, don't change it at every rally or fall. USDJPY is bullish, and has been bullish since I posted my long USDJPY chart 2 months ago. A day up or down won't change that.