USD/NOK may fall 594 - 874 pips

Our pivot point stands at 10.6420.

Our preference

The downside prevails as long as 10.6420 is resistance.

Alternative scenario

Above 10.6420, look for 10.6900 and 10.7190.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 10.6400 and 10.6519). Finally, the USD/NOK is trading below its lower Bollinger band (standing at 10.6049).

Supports and resistances

10.7190 **

10.6900 *

10.6420 **

10.6230

10.6004 last

10.5410

10.5130 **

10.4840 *

10.4550 **

Number of asterisks represents the strength of support and resistance levels.