Proposed Long USDNOK (trend continuation)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 steps.
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USDNOK trade ideas
USD/NOK is approaching the verge of the waterfallUSD/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! :)
Beautiful Setup for US Dollar / Norwegian KronePair has surged ~2% during the last week reaching a multi-week high and fell from it several days ago. Price seems to have bottomed below 9.00 level, from where it jumped up suddenly.
We now notice that a bullish flag is slowly being shaped and is able to break at any time, opening the gates for 9.15 and then for further bullish waves, assisted by the ambitious Dollar strength which is yet to come.
A dive in the red zone I have drawn means either that market needs more orders to shoot high or that sellers have won the medium-term game and will drive the price down, with no support anywhere close.
We stay patient while the flag hasn't completed yet so we have to see a break in order to place any trade, either to the long side or to the downside.
USDNOK Reverses off of 'Perfect' LevelUSDNOK reversed sharply last week from the line off of the 2016 and 2018 highs. This line was precise resistance AND support in 2019. The area around last week’s low has been a major horizontal level since 2016. I also like that the 200 week average is just under the low. General upside focus is 9.87-9.98. This is the former 4th wave high (5 waves down from the March high) and 38.2% retrace of the drop.
Two scenarios on USDNOK by ThinkingAntsOkMain items we can see on the chart:
a) The major structure we can see is a Daily Ascending channel
b) Currently, the price is on the lower trendline of the channel + major support resistance zone / That provides us with a strong level
c) Now we have to pay attention either for a reversal movement or a continuation one
d) We have established those 2 zones one for the bullish and one for the bearish direction. The idea is not to trade directly but to wait for the adequate corrective structures