USD/NOK 4H Chart: Channel Up

The American Dollar is trading against the Norwegian Krone at the intersection of two ascending channels. By the end of the previous trading day, the pair reached the upper boundaries of both channels. However, the attempt of the currency rate to break from the dominant pattern failed. Most likely the pair is going to tumble to the weekly R1 at 8.5315, which it might use as a springboard to make another attempt to break out from the senior channel. Nevertheless, the surge is likely to be constrained by the 61.8% Fibonacci retracement level at 8.5873. On the other hand, the pressure of the medium-term channel could actually prevail and push the rate downwards until it reaches the 50% retracement level at 8.4682.