USD/NOK is approaching the verge of the waterfall
USD/NOK surged nearly 4.00% this week already. This was mostly fired up by the buying appetite of USD bulls. We noticed that the pair was moving in a correction direction during the last week whose results appeared this week.
But now, we see that our pair is moving very aggressively to form new highs, which triggers bears interest to sell after a bullish failure. Moving in an ascending channel after a bullish run is very overbought environment and a break of the channel is a clean sell signal. We can also see that the price stalled on the touch of the Weekly R4. I don't expect it to move higher this week, as I believe that week highs have been set. The level I look as a bearish target is set to be Weekly R1 at 190 pips below channel limit.
Good luck with your choices! :)
But now, we see that our pair is moving very aggressively to form new highs, which triggers bears interest to sell after a bullish failure. Moving in an ascending channel after a bullish run is very overbought environment and a break of the channel is a clean sell signal. We can also see that the price stalled on the touch of the Weekly R4. I don't expect it to move higher this week, as I believe that week highs have been set. The level I look as a bearish target is set to be Weekly R1 at 190 pips below channel limit.
Good luck with your choices! :)
Comment:
Seems like we'll see an overbought dollar for a bit more. . .
