USD/NOK 4H Chart: Channel Up

The American Dollar is trading against the Norwegian Krone simultaneously in the short-term descending and medium-term ascending channels. The junior pattern represents that part of the senior channel, where the currency exchange rate bounced off from its upper trend-line. In the early morning of this trading session the pair slipped to the bottom edge of the dominant channel and made a rebound, as the pattern's border was additionally supported by the weekly S1 at 8.4011. From a technical perspective, the junior formation is expected to be broken by the surging currency rate. However, a combined resistance level formed by the weekly and monthly PP at 8.4845 as well as the 55-period SMA at 8.4857 might force the pair to make a U-turn. If the rate fails to break through this barrier, a triangle might start to form. If the pair will succeed, there would be no seizable barriers on its way up until the upper edge of the senior channel.