FxNews—The U.S. Dollar’s robust uptrend eased after the price filled the ‘Fair Value Gap” at approximately 11.13 against the Norwegian Krone. As of writing, the USD/NOK currency pair trades at about 10.98, testing the 50-period simple moving average as support in the 4-hour chart.
The 4-hour chart below demonstrates the price of the trading asset, key support and resistance levels, and the technical indicators utilized in today’s trading session.
USDNOK Technical Analysis – 30-July-2024
As depicted in the daily chart below, the stochastic oscillator is overbought, meaning the market might step into a consolidation phase, or the trend might reverse from a bull market to a bear market.
The awesome oscillator recently turned red, indicating the sellers are adding pressure. The relative strength index is below the 70 level and declining. These AO and RSI 14 developments suggest we might witness the price of USD/NOK test the lower support levels.
USD/NOK 4-Hour Chart Analysis
Zooming into the 4-hour chart, we notice the awesome oscillator bars are red and below the signal line, meaning the downtick momentum gains strength. Therefore, we can expect the price to consolidate or test lower support levels before the uptrend resumes.
USDNOK Forecast – 30-July-2024
The ascending trendline supports the bull market, while the July 26 low at ~10.89 is the immediate support. Conversely, the immediate resistance is the July 29 high at ~11.05, which aligns with the July 23 high, making this resistance level robust.
The uptrend will likely resume if the USD/NOK bulls (buyers) close above the 11.05 resistance. The next bullish target in this scenario will be the July 25 high at ~11.13. Furthermore, if the price exceeds 11.13, the bull’s path to the October 26, 2023 high at ~11.26 could be paved.
Please note that the key resistance is at the July 16 high of ~ 10.84. The bullish strategy should be invalidated if the price dips below ~10.84.
- Also read: USD/MXN Forecast – 29-July-2024
USDNOK Bearish Scenario – 30-July-2024
The 4-hour chart above depicts and points out the candlestick patterns. Interestingly, the chart formed two handing man candlestick patterns near each other, signaling the short-term bearish momentum should be taken more seriously.
If the selling pressure that began on July 25 at ~11.13 extends below the key resistance level at ~10.84, the downtrend will likely be triggered, with the July 18 low at ~10.69 as the next bearish target.
USDNOK Support and Resistance Levels – 30-July-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 10.89 / 10.84 / 10.69
- Resistance: 11.05 / 11.13 / 11.26
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
