USD/NOK 1H Chart: Pair respects senior channel

The US Dollar has made a sharp recovery against the Norwegian Krone during the past trading sessions. This strong upward movement comes after the pair bounced off the bottom boundary of a long-term descending channel circa 7.65. Given that this line was respected, the pair is likely to advance even further within the following week or two, setting the 8.10 area as a possible target.

In the short term, however, traders might see a brief correction south down to the combined support of the 100– and 200-hour SMAs and the weekly PP located at 7.72. In case this area does not hold, the US Dollar should be stopped by the channel line near 7.64. Subsequently, the rate should accelerate and move higher, as already described previously.