© Dukascopy Bank SA
During the first nine days of 2014 the U.S. Dollar has been constantly strengthening against the Norwegian Krone and each new high was higher than the previous one, reflecting the strength of bullish movement. Nevertheless, the pair is unlikely to reach another high, as aggregate technical indicators are neutral, while almost 72% of traders are holding short positions on the pair, expecting a period of consolidation. On the other hand, recently the pair tried to penetrate pattern's support line, however, the price immediately jumped more than 400 pips higher. Therefore, the most probable scenario is further appreciation, however, it would be as rapid as earlier.
© Dukascopy Bank SA