The Norwegian krone had a pretty volatile week. It has been appreciating against its U.S. counterpart throughout the second half of November with no apparent signs of bottoming. On Tuesday, when the USDNOK reached 5.64, we finally saw some bulls returning to the market as the price of oil started moving on the downside. The traders of binary call options were the big gainers as the USDNOK shot up sharply higher, pushing above its 25-period, its 50-period and its 100-period moving average. After reaching 5.70 the currency pair lost some of its momentum as resistance started forming around this key level. The Norwegian currency struggled with this resistance for a while with the traders of binary range in options benefitting the most in the process. The choppy movement extended well into the Wednesday session with neither the bulls nor the bears able to prevail. Support started forming around 5.69, but it didn’t last for a long time as in the afternoon a strong demand for the Norwegian krone send it higher against the U.S. dollar. Traders of binary put options were the big winners this time as the USDNOK moved from 5.70 to finish the session at 5.6657. On Thursday the demand for the krone remained strong and that led to another decline in the USDNOK, which traded as low as 5.64 at one point during the session. The bulls, however, were once again able to recover, sending the U.S. dollar sharply higher versus the Norwegian krone. We again retested the 5.70 level, but it proved to be too serious of a challenge. The currency pair still finished around the highs for the day, at 5.6874. Today the Norwegian krone is putting pressure on the U.S. dollar once again, but the USDNOK is showing signs of bottoming. The price discrepancy between the highs and lows is becoming smaller and smaller, which can be seen as a sign of a trend continuation. If the support around 5.64 proves to be too much of a challenge for the bears, however, we might finally see a substantial correction of some sort. Oscillators are in mid-range with the relative strength index at 42 and the stochastic at 24. The MACD is issuing sell signals and is currently standing very close to the key 0 level.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.