FX.co ★ USD/NOK analysis for March 7, 2013

USD/NOK Elliott Wave
Since our Wednesday analysis, the USD/NOK pair was trading upwards just like we expected, corrective wave A (coloured blue) of the bigger wave (B) (coloured green) was developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 5.6833 towards the 5.7121 level. Therefore, during the New York session this currency continued trading in a bullish mood and the price reached a new high at 5.7199 level. We can consider this movement as the end of the wave A (coloured blue) of the wave (B) (coloured green). At the moment the USD/NOK pair is trading at 5.6893 level and we are expecting to see price around 5.7373 level soon. In accordance with our wave rules and taking into account that the wave C should retrace 100% of the waves A, we can define the potential targets with measuring wave A with take profit at 5.7373 (100% of wave A). To reduce the risk, we can use support at 5.6835 level as stop loss.

Alternation: Wave (B) (coloured green) is over and we expect to see the price around 5.6000 level soon, this count will be valid if price brakes below 5.6835 level.

Support and Resistance
(S3) 5.6701 (S2) 5.6858 (S1) 5.6956 (PP) 5.7113 (R1) 5.7270 (R2) 5.7368 (R3) 5.7525

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 5.6950 with stop loss at 5.6835 and take profit at 5.7373 are recommended.