USD/NOK may rise 650 - 930 pips

Our pivot point stands at 10.4750.

Our preference

The upside prevails as long as 10.4750 is support.

Alternative scenario

The downside breakout of 10.4750 would call for 10.4270 and 10.3990.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (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 10.4984 and 10.5077). Finally, the USD/NOK has crossed above its upper Bollinger band (10.5213).

Supports and resistances

10.6790 **

10.6500 *

10.6210 **

10.5930

10.5280 last

10.4940

10.4750 **

10.4270 *

10.3990 **

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