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Short-term Trading Idea FX USD/NOK – Wait and See: Possible Rebound or Break Below 8.10

Trading opportunities for currency pair: the dollar has broken the trend line and is trading below the lower limit of the channel. Any increase in pressure on the dollar and growth of oil quotes will see the rate shift to 7.8950.

The last idea I did on the USD/NOK was on 29th June. Due to a lack of growth for oil quotes, I considered a break in the trend line and a growth of the dollar to a maximum since 10/04/15 (8.1563). The break took place and the USD/NOK rose to 8.3985.

The pair has been consolidating for 48 trading days in a channel with a 3,400 point range. The oil price has stabilized at $49 per barrel. A correction for the USD has started with the FOMC meeting approaching. Investors are worried that the US Fed will stave off an interest rate hike on 17th September.

The USD/NOK has broken the trend line and is now by the lower limit of the channel. On Monday the pair could correct to 8.2150/70. Afterwards we’ll have to have a look at how the buyers are set up according to the correction. Any increase in pressure on the dollar and growth in oil quotes will see the rate shift to 7.8950.

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