USD/NOK Elliott Wave
For the last few days the USD/NOK was trading downwards, impulsive wave (B) (coloured red) of the bigger wave (2) (coloured purple) was developing. Yesterday during the European session we could observe strong descending movement from 5.7560 towards the 5.7174 level, and this strong bearish movement confirmed possible bearish movement. Therefore, during the New York session this currency continued trading in a bearish mood and the price reached a new low at 5.7055 level. At the moment the USD/NOK is trading around 5.7099 level and we expect to see the next support around 5.6055 area. In accordance with our wave rules and taking into account that the wave B should retrace 50% of the waves A, we can define the potential targets with measuring wave A with take profit at 5.6053 (50% of wave A). To reduce the risk, we can use invalidation at 5.7832 level (end of A wave) as stop loss.
Support and Resistance
(S3) 5.6589 (S2) 5.6731 (S1) 5.6873 (R1) 5.7353 (R2) 5.7496 (R3) 5.7640
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 5.7020 with stop loss at 5.7832 and take profit at 5.6053 are recommended.