USD/NOK: Bearish Trend of Norwegian Krone Remains Alluring

The USD/NOK continues to mount a steady attack on support levels that appear to be vulnerable.

Speculators who believe the USD/NOK will continue to test seemingly vulnerable support levels cannot be faulted for selling the US Dollar against the Norwegian Krone. Short term trading is far different than long term positions, but the bearish trend of the USD/NOK allows speculators with limited timeframes to perhaps rest more comfortably.

Resistance levels for the USD/NOK via technical perspectives continue to incrementally decrease. Current short term resistance appears to be near the 9.17000 mark and traders who want to be more careful may look at 9.25000 as a potentially high water level if a sudden bullish reversal were to take place.  But will there be a volatile burst of buying the US Dollar against the Norwegian Krone in the short term? The answer appears to be no.    

There are no guarantees in trading and one-way avenues are not commonplace. However, since the middle of March, the USD/NOK has experienced a bearish trend. And while traders may feel there isn’t much more value the Norwegian Krone can add against the US Dollar, they may be proven wrong.

Risk appetite appears stronger in Europe after the economic agreement made earlier this week to help troubled nations with economic support as coronavirus is battled. While Norway famously projected an independent nature and is not a member of the EU, it is strongly associated with Europe via its participation in the European Economic Area.

In other words, Norway benefits when economic harmony and government cooperation work effectively in Europe. The USD/NOK is challenging very important support levels and the mark of 9.0000 remains enticing for speculators. However, patience will likely be needed to attain this support level. Traders who short the USD/NOK have a tough decision to make regarding their trading goals. Profiting is always the motivation, but greed is a dangerous element and sometimes traders stay in positions too long when they anticipate further moves which sometimes do not bear fruit. In other words, know when to get out of a trade when you have made money. You will know the answer to this when you ask yourself how comfortable will you be if the trade suddenly turns against you and profits erode.

Shorting the USD/NOK remains a good decision. Using stop losses near key resistance levels is also a logical choice. Traders who are inclined to sell the USD/NOK within a value range of 9.12000 to 9.15000 cannot be faulted if they believe the bearish trend will continue for the forex pair.

Norwegian Krone Short Term Outlook:

Current Resistance: 9.17000

Current Support: 9.08000

High Target: 9.26000

Low Target: 9.05000

USD/NOK

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.