Potential signals:
I am looking to buy this pair and would do so now. However, I think this is a situation where the market is still likely to go higher as long as we stay above the 10.70 NOK level. I am aiming to reach the 10.85 NOK level.
- As you can see, the market is kind of hanging around just above the 11 Norwegian Krona level. And I think at this point, we continue to go sideways.
- We had shot straight up in the air and now we are likely to see a lot of bank and forth.
- I think short term pull backs offer buying opportunities as it offers cheap US dollars. Keep in mind that the Israeli strike against Iran made the oil market spike and that somewhat helps in Norwegian Krone.
So, with that being the case with both of these being petrocurrencies and the US dollar being a safety currency we kind of were rather calm in this market compared to many other currency pairs, I invite you to look at the US dollar against the Mexican peso chart. If you want to see something truly astonishing.
So, at this point, you have a market that I think is working off froth and it's going to use the 11 Krone area as a potential support level. If we do break down below there, 50 day EMA is right around 10.72 or so and should support the dollar against the crown assuming that we even fall that far a break above the top of the candlestick opens up a move to 11.28 above as the market is likely to see a lot of resistance above.
In general, I think this pair will be a bit different than a lot of oil based currency pairs, as the NOK is also considered to be a situation where we are looking at a smaller currency, and therefore the “safety aspect” of the US dollar could override all over things. Also, with the uncertainty in the world, this pair could be a bit difficult at this point. I prefer the USD, but at this point, I think that pullbacks should continue to be opportunities for plenty of people that show patience when it comes to trading this strong trend. I have no interest in shorting this market.
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