FX.co ★ USD/NOK candlestick analysis for August 4, 2011

The USD/NOK currency pair cannot break the support level near 5.3200. However, the pair is still trading in a downtrend after it was unable again to break the resistance near 5.6271.
Earlier in a daily graph the USD/NOK has formed a Bearish Engulfing candlestick combination indicating downside movement.
This candlestick combination was formed amid a rebound of the pair from the 5.3505 level that could not have been broken by the pair before. Nevertheless, the upside movement was paused near 5.4461. Further the bears started to increase their influence.
Break of the support level 5.2146 will denote that this point of view is correct. In this case we should expect downside movement to a multi-month low 5.1173.
However, it should be mentioned that in case the resistance level 5.6271 is broken short positions should be closed as it will lead to growth to 5.7217.