USD/NOK 1H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
A broadening descending wedge as well as a channel up has been developed early September, causing USD/NOK to dip 3.5 percent in total. The rate has currently broken the upper trend-line of both patterns, partially due to dissatisfying European data. A strong bullish signal by the 55-period and 200-period SMA crossover in the 30 minute chart suggests that the pair will not return into the pattern and a bullish outburst is indeed the most likely scenario. The rate will rally to 8.2145 where a sell-off could lead to a retracement towards the upper trend-line. In case the pair turns out to lack strength and returns into one or both of the patterns, it will have to overcome the tough 8.1712/65 demand area, where the combined strength of different SMAs, the daily Pivot Point and lower Bollinger Band will try to push it back up.
© Dukascopy Bank SA
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