USD/NOK 1H Chart: Pair consolidates near four-month low
The US Dollar has been trading in a channel down against the Norwegian Krone since mid-October. The bottom boundary of this pattern was tested last Wednesday when the pair hit a four-month low of 7.82.
It has remained relatively stable during the past week. The Greenback re-tested the aforementioned low a few sessions later but nevertheless failed to form a distinct wave either up or down.
It is expected that the pair continues to approach the upper boundary of both channels near the 7.88 mark. The steepness of the longer-term channel demonstrate that this pattern could be breached in the nearest time. However, the Greenback should still overcome a significant resistance cluster set by the 100– and 55-hour SMAs, the weekly PP and the monthly S3 circa 7.87; the 200-hour SMA is likewise located nearby at 7.92.
A successful breakout of these levels might suggest that the upside momentum towards the 8.01 area is to persist for several sessions.
It has remained relatively stable during the past week. The Greenback re-tested the aforementioned low a few sessions later but nevertheless failed to form a distinct wave either up or down.
It is expected that the pair continues to approach the upper boundary of both channels near the 7.88 mark. The steepness of the longer-term channel demonstrate that this pattern could be breached in the nearest time. However, the Greenback should still overcome a significant resistance cluster set by the 100– and 55-hour SMAs, the weekly PP and the monthly S3 circa 7.87; the 200-hour SMA is likewise located nearby at 7.92.
A successful breakout of these levels might suggest that the upside momentum towards the 8.01 area is to persist for several sessions.