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Short-term Trading Idea FX USD/NOK – Bull Speculation: Expect Break in Trend Line

Trading Opportunity on currency pair: the rate of the USD/NOK has stopped by the trend line (H8.4187-H8.0025). Taking the strength of the dollar and the lack of growth on oil quotes into account, I’m inclined to believe that a break in the trend line and a growth in the rate of the dollar to a maximum of 8.1563 from the 10th of April, 2015 are due. For the moment, I’m not considering a fall in the dollar.

In the idea that I did on this pair on 11th May, I took two price levels, 7.5431 and 7.7144, as a target. The bulls didn’t take the target immediately. Before heading upwards, the dollar returned to 7.2885. Then over the course of 15 days, it lifted all the way to 8.0025.

This week I’ve again chosen this currency pair. It’s now clear what attracted me to it. The rate of the USD/NOK has stopped by the trend line (H8.4187-H8.0025).

On Friday the dollar received support from US data and a growth in American bonds. The Michigan index came out much better than forecasted and reached a maximum since January. Additional strength was gifted to the dollar bulls from news from Greece. The Greek government has turned down the offer to extend the financial aid program for another 5 months.

The 7.72-7.60 zone is a decent support. Taking the dollar’s strength into account, as well as the lack of growth in oil, I’m inclined to a break in the trend line and a growth in the dollar to an 8.1563 maximum since 10th April, 2015.

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Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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