The US Dollar has strengthened against the Norwegian Krone since mid-August, thus forming a channel up.
If looking at the pair’s movement during the past two weeks, a junior ascending channel could also be distinguished. The Greenback is trading near the lower boundary of this short-term pattern, suggesting that a reversal might be in sight. This assumption is likewise supported by technical oscillators that are located near the oversold territory.
A possible point of reversal might be the weekly S1 circa 7.9344. The subsequent movement is expected to be north, as no indication points to a possible breakout of the junior formation. The nearest upside target is the 200-, 100– and 55-hour SMAs and the weekly PP circa 7.9850.
However, the rate might push even higher towards the weekly R1 at 8.0404. In the medium term, it should move towards the bottom boundary of the senior pattern in the 7.90/94 territory.
If looking at the pair’s movement during the past two weeks, a junior ascending channel could also be distinguished. The Greenback is trading near the lower boundary of this short-term pattern, suggesting that a reversal might be in sight. This assumption is likewise supported by technical oscillators that are located near the oversold territory.
A possible point of reversal might be the weekly S1 circa 7.9344. The subsequent movement is expected to be north, as no indication points to a possible breakout of the junior formation. The nearest upside target is the 200-, 100– and 55-hour SMAs and the weekly PP circa 7.9850.
However, the rate might push even higher towards the weekly R1 at 8.0404. In the medium term, it should move towards the bottom boundary of the senior pattern in the 7.90/94 territory.