USD/NOK: A steep bullish movement. The MACD is wide open. Will there be a correction?
The danger of a hard Brexit continues to float above the markets. This would also affect the economies of the European continent, including those not directly linked to the eurozone and the European Union. The Norwegian krone is worth a closer look against the US dollar.
The weekly chart shows an interesting picture. Since March 2018, the market has been working its way up, slowly. It has been able to overcome important structural levels.
In November 2018, the market managed to jump over the critical area of 8.45 to test the old highs from the turn of the year 2015/2016. Then, a re-test of the 8.45 range took place, from which the market was able to push itself upwards again at the beginning of February 2019.
The daily chart shows a steady but steep upward movement up to the essential structural level in the range of 8.69. With yesterday’s candle, the market again fell below this level.
The MACD is in positive territory, and the two lines are far apart so the possibility of a correction should be considered.
If further upside potential is to be achieved the market must move beyond the 8.69 range. There is further resistance on the upside in the area of 8.81.
If the market doesn’t go straight up and finds no support in the 8.65 range, the next significant support could wait at 8.60 or 8.52, which could also be possible turning points for a correction.
If, on the other hand, the bears gain more than they can handle, a slide into the 8.45 range is possible.
USD/NOK Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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