USD/NOK may fall 650 - 940 pips

Our pivot point is at 10.8530.

Our preference

The downside prevails as long as 10.8530 is resistance.

Alternative scenario

The upside breakout of 10.8530, would call for 10.9020 and 10.9320.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 10.8771 and 10.9164). Finally, the USD/NOK is trading below its lower Bollinger band (standing at 10.8153).

Supports and resistances

10.9320 **

10.9020 *

10.8530 **

10.8340

10.8070 last

10.7420

10.7130 **

10.6840 *

10.6540 **

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