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justatrader
May 18, 2014 5:17 AM

USDNOK - Time to short Short

U.S. Dollar/Norwegian KroneFXCM

Description

Update from the previous chart for USDNOK, we see three patterns confirming the target of 5.83530,

Risks:
20/05: Norway GDP release forecast 1.34%. Prev 1.1% y/y | forecast 1.52%. Prev -0.2% q/q
22/05: Unemployment rate. Its been stable at 3.5%, so any downside reading could pose some threats to this trade.
Comments
justatrader
Who would have thought... -ve GDP and nothing. So I guess the neckline of the H&S would be tested today and tomorrow or next week a bounce to 6.00 level. Markets are irrational!!
HexVex
Amazing! No movement at all in the market Wet armpits for nothing :) Would you long it until 6.00? I'm not so sure.
justatrader
No longs. Would rather wait till it hits 6. Other pair i'm watching is EURNOK.. Its ripe for a retracement. Been bearish for a long time.
HexVex
What will make the EUR go up against NOK with Draghi on stage next week? SEK makes sense but NOK? Norways main trsding partner is the EU perhaps?
justatrader
Inflation data is due on Monday... So by Thursday i hope to see some kind of retracement back to 8.2 or 8.0 before the drop towards 7.95. But just speculation for now. Will have to take a look closer to the dates.
justatrader
If the current bearish action is anywhere close to entry, i'd suggest a partial or a full close depending on the no. of $$'s in profit or loss. Wait till the GDP is released... it looks like the actual print could be better than the estimates.
HexVex
I'm already out although my timing could have been better. I agree, if GDP is a tiny bit better than expectations market will react.
HexVex
Missed that too :(
justatrader
I missed the H&S pattern, which seems to have been validated so 6.0035 is the obvious upside target. Will have to see how this will play out.
HexVex
Lets hope DX1 doesn't get over 80.60 by much and the US GDP is a total wipe out tomorrow :)
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