Short term highs in the USD/NOK are traversing near important resistance levels, having made new highs before going into the weekend. As of this writing the USD/NOK is near the 10.25200 mark with fast conditions wasting no time to produce other values, so traders should compare the written numbers here to their ratios as they study the currency pair.
On the 12th of September the USD/NOK was trading near the 9.77300 level, which was traversed fairly regularly from the 19th until the 31st of August within range cycles. It should be noted a low of nearly 9.46300 was seen on the 11th of August. However, traders of the USD/NOK will certainly note on the 14th of July a high of 10.35000 was tested. The difference in values is highlighted to show the dynamic nature of the USD/NOK and why it should be treated with effective risk management.
Commodities and Interest Rates a Huge Factor for USD/NOK
While the USD/NOK moves in a way that often reflects global Forex, the ability for the currency pair to move away from the standard technical moves of its counterparts should be taken into consideration. The factor that the USD/NOK is also affected by the price of commodities is important. Yes, the interest rate considerations of the U.S Federal Reserve factor into values, but the price of Crude Oil is a major part of the equation too fundamentally, and causes the USD/NOK to seem adrift and unrelated to other major currency pairs sometimes.
- Values within the USD/NOK are now trading near important resistance created in July of this year.
- If the bullish trajectory of the USD/NOK remains solid the 10.27000 realm should be watched for reactions.
The higher realms of the USD/NOK may look overbought, but nervous global behavioral sentiment is causing turmoil in Forex and equity markets. The USD/NOK is not immune from the interest rate policies of the U.S Federal Reserve. The fact that Crude Oil prices have come off highs may be playing into the bullish trend of the USD/NOK too for the moment. Speculators who believe the USD/NOK has been overbought need to practice solid risk taking tactics if they are betting with short positions.
The near term will likely remain dynamic for the USD/NOK with plenty of fast trading. If a move higher was to be sparked and resistance is challenged near the 10.27650 realm this could spark another leg upwards in the short term. Quick hitting trading should be done with solid entry price orders, and the use of stop loss and take profit techniques. Buying the USD/NOK in the short term on slight moves lower towards current support levels may attract bullish speculators today.
Norwegian Krone Short Term Outlook:
Current Resistance: 10.27648
Current Support: 10.23700
High Target: 10.30000
Low Target: 10.20530
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