Over the last week, the USD/NOK has experienced a substantial bearish trend. While the pair has fallen over 1000 pips in that time, technical indicators are now showing that an upward correction may occur in the very near future.
For our analysis today, we will be looking at the 8-hour USD/NOK chart, provided by Forexyard. The technical indicators being examined are the Bollinger Bands, Relative Strength Index (RSI), and the Williams Percent Range.
1. The Bollinger Bands have begun widening, while the latest candle stick is currently below the lower band. These are both signs that a bullish correction will likely take place.
2. The Relative Strength Index is currently right around 30. Typically, the pair is considered oversold when this indicator is at 30 or below. Traders can take this as a sign that upward movement is imminent.
3. The Williams Percent Range is currently at -90. When this indicator drops below -80, the pair usually sees a bullish reversal. This further supports our original theory. Traders will want to enter into buy positions for this pair before the upward breach.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
