- During the trading session on Friday, we have seen the US dollar get hammered against multiple currencies, and it has dropped pretty significantly against the Norwegian krone.
- That being said, this is a market that I think will continue to pay attention to the overall uptrend, and it is probably only a matter of time before we see some type of recovery bounce that people will try to take advantage of.
- After all, this market has been very noisy for a while, but I also recognize that the buyers have been somewhat aggressive.
Because of this, it’s not a huge surprise to see that perhaps we need to take a bit of profit at this point in time, and that might be part of what’s going on as well.
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Technical Analysis
The technical analysis for this USD/NOK pair is rather strong, despite the fact that the last couple of days have been somewhat brutal. Because of this, I think you need to look at this through the prism of short-term pullback and perhaps try to take advantage of this sooner rather than later. I don’t like the idea of trying to short this pair, because despite the fact that the US dollar has been beaten up on rather significantly. All things being equal though, the trend is still very much to the upside, and it’s hard to imagine a scenario where the Norwegian economy suddenly takes off while the US economy suddenly slumps.
This pullback should end up being a buying opportunity, and that’s exactly how I am going to approach this. With that being said, the market is likely to continue to see a lot of noise and volatility, but I do believe that eventually this market will turn around and show signs of life again. If we can break above the 11.50 NOK level, then I think we really start to take off to the upside as FOMO would enter the market.
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