USD/NOK continues to trade above its medium-term upside support line, taken from the low of September 26th. After another test of that line on April 17th, the pair had set sail north and keeps on traveling in that direction. Of course, minor downside corrections do occur, but overall, it looks like the rate might continue with its journey higher, at least for now.
USD/NOK is currently stuck slightly below its key resistance zone, near the 8.700 barrier, which previously acted as good resistance on April 25th and 26th. If that barrier fails to withhold the bull-pressure and we see a daily candle closing above it, this could be a good sign for more bulls to join in and drive the rate further in the upwards direction, potentially bypassing the 8.728 obstacle and hitting the 8.752 area, marked by the high of March 11th. This is where the pair might stall for a while, or even retrace back down a bit. But if the bears are still feeling weak, the bulls could take over again and push the rate above the 8.752 barrier and target the 8.820 level, which is near the highs of December 26th and March 8th.
Taking a quick glance at our oscillators, the RSI and the MACD, both seem to be in support of the upside scenario, at least for now. The RSI is above 50 and still points higher. The MACD also looks promising for the bulls, as it remains pointing higher, by sitting above zero and the trigger line.
Alternatively, if by any chance, USD/NOK travels back below the 8.613 support zone, this could raise concerns in the bull-bloc over the pair’s short-term upside potential. More sellers could then enter the game and drag the rate to the 8.559 obstacle, a break of which may open the door to the 8.520 hurdle, marked by the highs of April 21st and 22nd. Slightly below that runs the aforementioned medium-term upside line, which, once again, could stop USD/NOK from moving lower.
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