The US Dollar has appreciated against the Norwegian Krone during the past four weeks. As a result, the pair has formed two patterns, namely, a channel up and a descending wedge.
It seems that the junior formation has already reached maturity; thus, a breakout, most probably to the upside, is likely to occur already in this session. Technical oscillators are close to being in the oversold area. Thus, the base scenario favours the US Dollar falling down to the bottom channel boundary circa 7.78 and subsequently reversing to the upside.
Nevertheless, the Greenback faces a significant resistance set by the 200-, 55– and 100-hour SMA and the weekly and monthly PPs in the 7.8200/7.8600 area. If this territory is breached, it is likely that the rate tries to approach the upper channel boundary during September.
It seems that the junior formation has already reached maturity; thus, a breakout, most probably to the upside, is likely to occur already in this session. Technical oscillators are close to being in the oversold area. Thus, the base scenario favours the US Dollar falling down to the bottom channel boundary circa 7.78 and subsequently reversing to the upside.
Nevertheless, the Greenback faces a significant resistance set by the 200-, 55– and 100-hour SMA and the weekly and monthly PPs in the 7.8200/7.8600 area. If this territory is breached, it is likely that the rate tries to approach the upper channel boundary during September.