Summary: The market seems to be putting on the reflationary trade today ahead of the uncertainties of the US Election as the USD and JPY wilt, while the AUD rushes higher after brushing off the well flagged easing moves from the RBA overnight. Any strong turn-out among Democrats could support an extension of this development, while a contested election scenario...
The USD/NOK chart has formed a double top pattern, fell to the nearest support and has now the possibility of bouncing from there back to the top again, just waiting for a confirmation in the next few days.
An Elliott case can be made for a strong USDNOK rally to get underway soon. To review, the decline from the March high was in 5 waves (textbook by the way). Since the September low, we’ve had a leg up and a leg down…waves A and B of a proposed 3 wave correction. As such, wave C is due to get underway and end above the September high of 9.6158. Reversal...
The pair will continue to move lower in the following days towards its October 2018 low. Norway has the highest Q2 to Q3 ratio among countries in Europe. The country managed to expand by 4.6% in the third quarter, almost completely recouping the 4.7% contraction in the second quarter. In addition to this, the country had a trade surplus of $2.7 billion in October...
Low-interest rates in the united states and a negative current account balance should continue to structurally weaken the U.S Dollar.
We look at the following trades
Downtrend appears to have ended with price now consolidating sideways. Bottom of channel has been tested twice and price looks close to breakout. Long from pull back into 9.31 with stop at 9.15 and target of 9.6.
The market is at the low end of the curve of where price action is currently trading.
I'm bullish on this pair, but I'll be even more bullish after there's a B.A.R. of the $9.8120. However, that may not happen for awhile unless there's some big news drop that'll help propel price to higher levels, but I would be anticipating some more bear action to assist in...
Take a look at the daily chart too. After the massive bear trend, since Sep we have been mostly bullish.
As the H4 chart shows, a retracement to 38.2% was completed and I expect the bull trend to resume. The recent high at about 9.61 should be the 1st target, with a review of price action to determine the next possible...