At present, the USD/NOK currency pair is in a strong bearish trend. It’s in a zig-zag correction, where wave (c) blue is currently a strong temporary upward retracement. This correction is a move contrary to the primary downtrend. Recently, analysts have begun to view it as a simple corrective pattern on a two-hour chart. FXStreet speculates that this pattern concluded with A and C equal in wavelength. This is an important signal in the current market flipper-ity.
The zig-zag correction has already touched the channel resistance line, leaving open the question of whether this correction would be sufficient to turn back a broader trend or not. Please note that the level of 10.0 has become a pivotal point for the USD/NOK pair. Analysts suggest that if the currency pair breaks below this level, it could signal a stronger bearish takeover, potentially leading to further declines.
According to FXStreet’s technical analysis, this zig-zag correction is actually a longer-term move. You need to look at this through the lens of the longer-term still bearish trend. Traders are eagerly awaiting the outcome of these counters. Public policy and fiscal correction The implications of this correction will very much determine the underlying drivers of the USD/NOK going forward.
On October 13 FXStreet was joined by AI & machine learning expert, David Penn to dive deeper into this topic. The session provided a basic understanding of market dynamics, along with specialized commentary from industry experts on the importance of this new analysis. Throughout the program, participants had the unique chance to learn directly from the experts on what drives the USD/NOK currency pair.
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