USD/NOK may fall 600 - 900 pips

Our pivot point stands at 10.9800.

Our preference

The downside prevails as long as 10.9800 is resistance.

Alternative scenario

The upside breakout of 10.9800, would call for 11.0300 and 11.0600.

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 stands below its 20 and 50 period moving average (respectively at 10.9656 and 10.9822). Finally, the USD/NOK is trading below its lower Bollinger band (standing at 10.9358).

Supports and resistances

11.0600 **

11.0300 *

10.9800 **

10.9610

10.9270 last

10.8670

10.8370 **

10.8080 *

10.7780 **

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