While the US dollar has spent the last week stuck in a bearish trend against the Norwegian krone, (the USD/NOK pair has tumbled more than 1700 pips), we are starting to see signs that an upward correction is likely to occur. Technical indicators are showing that the pair may have hit a strong support line, and that we may be in store for strong bullish movement.
We will be looking at the daily chart for USD/NOK, provided by ForexYard. The technical indicators being analyzed are, the Stochastic Slow, Williams Percent Range and MACD.
1. The Stochastic Slow has formed a bullish cross right around the 15 level, and the indicator is starting to point up. This can be taken as a clear sign that the pair is due for some upward movement.
2. The Williams Percent Range has just dropped below the -80 level, which is typically the cutoff point for a pair being in oversold territory. Traders will want to pay attention to this indicator. When is starts to point up, the USD/NOK will likely begin its upward trend.
3. A bullish cross has also formed on the MACD, giving further support to our theory that the pair is likely to move up. Traders will want to take advantage of this great opportunity and open up buy positions at a great entry price.
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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.
