Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

AUD/NOK Daily Outlook - Nov. 29, 2012

The AUD/NOK pair is a pretty exotic one. On one hand, they're both commodity currencies in this can cause a bit of a "grinder overall. You essentially have to think of it as gold versus oil when looking at price moves.

The Australians export quite a bit of gold and as a general rule of the Australian dollar follows gold overall. The Norwegians on the other hand, are exporters of oil, and the Norwegian krone tends to follow the price of oil. With this being said, it is easy to follow this market and see why the moves happen the way they do.

Gold fell precipitously during the session on Wednesday, and as a result the Australian dollar lost a bit of its luster against the Norwegian krone. However, oil markets didn't fare so well either - they just didn't "less bad."

5.94

You can see that there is a bit of a support and resistance line at 5.94 in this currency pair. The fact that we formed a shooting star on Wednesday does suggest that perhaps we could move a little bit lower, but there is a significant amount of support at 5.90 or so. The overall trend is down however, so I do favor trading this pair to the downside if we get a breakdown of the bottom of Wednesday's range. After all, trading with the overall trend is always preferable to the alternative.

If we managed to break the top of the shooting star however, this would be a buy signal and probably send this pair looking for the 6.00 handle. It's a large number, so there will be a certain amount of psychology involved in trying to break above the “perfect 6.” If we managed to get above their, this pair could really take off at that point.

AUDNOK Daily 112912

This is a pair that less liquid, but if you understand what's going on in the commodity markets, it can be a very fruitful one to trade. The spread is roughly 50 pips, but you have to keep in mind that the pip value is quite a bit lower than a major pair anyways. 

Christopher Lewis
About Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

 

Most Visited Forex Broker Reviews