USD/NOK Elliott Wave
Since our last analysis the USD/NOK pair was trading downwards, like we expected, impulsive wave 5 (coloured blue) of the bigger wave (a) (coloured green) was developing. Yesterday, during the European session we could observe strong ascending movement from 5.6930 towards the 5.7178 level. Therefore, during the New York session this Nordic currency did not manage to hold this level and the price started pushing lower reaching a new four days lows at the level of 5.6881 level. Today the USD/NOK pair is trading around 5.6880 level and we expect to see the price higher when development of wave (A) (coloured green) ends. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 5.7257(50% of wave A). To reduce the risk, we can use support at 5.6400 level as stop loss.
Support and Resistance
(S3) 5.6534 (S2) 5.6676 (S1) 5.6818 (R1) 5.7083 (R2) 5.7226 (R3) 5.7368
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 5.6578 with stop loss at 5.6400 and take profit at 5.7257 are recommended.
