Since the recent high of 8.60, we have now a set of lower high and lower low. The pair is now testing earlier floor (support) as resistance. If we manage to turn down from current levels (8.42+), we should retest the recent lows around 8.33.
In that matter, we should have a nice risk/reward for a short-setup in USDNOK. Short from 8.41-8.44 which stop above 8.46 and target 8.33 and below (can trail from these levels).
We've got a higher probability to go up because the resent lower high was violated to the upside. Taking this into a consideration there's no logic of placing targets at 8.33. Much better to place targets at 8.3974 which is exactly the most resent lower high. In this case you have a good chance to catch a correction. As for stops. It is safer to place them above previous LH. It's quote is 8.4787. As I see, you disregard the most recent lower high (double bottom neckline) violation and still stay bearish, then violation of 8,48 to the upside should be your last level of defence. If pricection violates this high then downward tendency is definitely over. So placing stops above 8.48 is safer. Even if you short the pair from 8.44 you risk to reward will be slightly inverted. Shorting from 8.41 has no sense at all. Of course, I may be wrong and priceaction installes new lower lows and lower highs making that violation of the neckline be a false breakout. In this case you scenario will be played very well. But still I wouldn't be selling this pair because of probabilities.
walker.england
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Congratulations on your graph being selected as the currency pick of the day! Your resistance line, and oscillator signal produced an excellent retracement trading opportunity .