Hi Traders,
The USDNOK reversed from a weekly support level and broke out of descending trendline and resistance level.
.
Price seems to be making an ABC zigzag corrective pattern which is likely to attract buyers at the 38.2 Fib ratio that lined up with swing level and moving averages.
.
We will wait for the completion of the corrective structure and then look for buy entry once the price breaks the blue CTL.
.
According to Elliot Wave principle, when wave (i) is extended, wave (iii) through to (v) is often 61.8 - 78.6% relative to the size of wave (i). So the price has the potential to move up towards the 61.8 - 78.6 Fib Extension level that lined up with a key resistance as planned on the chart.
.
Thanks for reading!
Veejahbee.
The USDNOK reversed from a weekly support level and broke out of descending trendline and resistance level.
.
Price seems to be making an ABC zigzag corrective pattern which is likely to attract buyers at the 38.2 Fib ratio that lined up with swing level and moving averages.
.
We will wait for the completion of the corrective structure and then look for buy entry once the price breaks the blue CTL.
.
According to Elliot Wave principle, when wave (i) is extended, wave (iii) through to (v) is often 61.8 - 78.6% relative to the size of wave (i). So the price has the potential to move up towards the 61.8 - 78.6 Fib Extension level that lined up with a key resistance as planned on the chart.
.
Thanks for reading!
Veejahbee.