USD/NOK may fall 617 - 907 pips

Our pivot point is at 10.9270.

Our preference

The downside prevails as long as 10.9270 is resistance.

Alternative scenario

The upside breakout of 10.9270, would call for 10.9770 and 11.0060.

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 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 10.9019 and 10.9189). Finally, the USD/NOK has penetrated its lower Bollinger band (10.8786).

Supports and resistances

11.0060 **

10.9770 *

10.9270 **

10.9080

10.8767 last

10.8150

10.7860 **

10.7560 *

10.7270 **

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