FX.co ★ USD/NOK candlestick analysis for June 10, 2011

The USD/NOK is still in the downtrend. Earlier in a daily graph the USD/NOK currency pair formed a Bullish Engulfing which indicates downside movement.
This candlestick combination was formed amid a rollback off the 5.3505 level which could not have been broken before. Nevertheless, the upside movement was stopped near 5.4461. Further the bulls started to increase their influence.
Break of the support level 5.2146 will mean that this point of view is right. In this case we should expect further downside movement up to multi-month low 5.1172.
However, it is worth mentioning that short positions should be closed if the support level 5.6271 is broken, as it will lead to a growth to 5.7217.