NOK got undervalued due to the OIL price decline
Norges Bank interest rate: 1.5% vs ECB 0% -> carry favors NOK
Inflation is also higher in Norway
I went short on technical + fundamental factors coinciding.
- German industrial production declining (-1.8%)
- IFO business climate continuous decline from 105 to below 97 points in a year
- ECB program and rate cut insufficient support for economy
- Daily double top formation
- 38.2 Fib level as TP1
- Enter trade with SL above recent high
Gold reached the weekyl support levels (200 & 20 MA). Technically a pullback long and a cuphandle breakout confluence appeared on the charts.
Fundamentally: USD weakening is an additional factor for gold bulls.
This is not an easy setup despite a clear picture. Post breakout pullbacks are S/L triggers, so I will wait to see a further break up, and then a pullback. Here I will try a second option long entry.
- NZD inflation figures (Wed)