The USD/NOK is near the 9.80000 ratio as of this writing with rather a quick trading flickering across the Forex monitor. The USD/NOK traded near a high around the 9.81560 level yesterday, as the U.S Federal Reserve was in the midst of announcing its interest rate hike which was anticipated. Yesterday’s low after the rate hike from the U.S. central bank came within sight of the 9.69770 realms with fast conditions prevailing and then demonstrated a reversal upwards.
The move lower in the USD/NOK has actually occurred since Tuesday and the lower price range now being tested is bouncing along mid-term lows which speculators need to consider. Monday’s high in the USD/NOK was near the 10.03550 ratios, the abundance of short-term volatility earlier this week shows behavioral sentiment remains nervous and caution is needed by speculators.
The notion the USD/NOK had been overbought from the middle of last week until early this week seems to have been demonstrated with the recent selloff. Even as the U.S. Federal Reserve has said it will potentially continue to increase interest rates, financial houses are showing signs they believe the U.S. central bank will be less aggressive.
USD/NOK Mid-Term Support Levels have Short-Term Importance
The ability of the USD/NOK to retest lows yesterday which have been seen in early December and today’s values continue to test realms not sincerely traded since late August and mid-September. These lower price levels have been challenged and have produced upwards momentum, the question is if the lower ratios between 9.70000 and 9.82000 are viewed as a fair equilibrium for the USD/NOK.
- Nervous Forex conditions may abound today and tomorrow. Support near the 9.78000 ratios should be watched, if it is broken lower this could trigger a retest to the 9.76000 prices.
- What may prove to be more important for short-term speculators is the notion that resistance near the 9.80000 to 9.82000 realms looks durable. If these higher prices can be maintained, this may allow for speculative selling wagers seeking a quick-hitting move lower.
The Return to Lower Values in the USD/NOK has Proven Dangerous for Selling Wagers
While some speculators may believe strongly the USD/NOK remains in the overbought territory while looking at long-term charts, day trading on this belief can be dangerous. Support levels have continued to produce upwards momentum after being tested, betting on more downside momentum is a logical perspective, but risk management will be essential.
The USD/NOK does produce solid trends, but its rather choppy conditions while banging around near support with sudden reversals higher highlight the need for caution. Sellers of the USD/NOK should remain conservative with their price targets.
Norwegian Krone Short-Term Outlook:
Current Resistance: 9.81400
Current Support: 9.77100
High Target: 9.82900
Low Target: 9.72100
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