USD/NOK may rise 646 - 936 pips

Our pivot point stands at 10.7010.

Our preference

The upside prevails as long as 10.7010 is support.

Alternative scenario

The downside breakout of 10.7010 would call for 10.6520 and 10.6220.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 10.7107 and 10.7077). Finally, the USD/NOK has crossed above its upper Bollinger band (10.7406).

Supports and resistances

10.8970 **

10.8680 *

10.8380 **

10.8090

10.7444 last

10.7200

10.7010 **

10.6520 *

10.6220 **

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