Yes, US Federal Reserve interest rate considerations factor into the values, but the price of crude oil is too fundamentally an important part of the equation, and makes the USD/NOK sometimes seem to drifting and unrelated to other major currency pairs.
USD/NOK’s short-term highs are breaking through resistance levels near important, having hit new highs before entering the weekend. At the time of this writing, USD/NOK is near the 10.25200 mark with fast conditions wasting no time in producing further readings, so traders should compare the numbers written here to their ratios when studying the currency pair.
The 12e of September, USD/NOK was trading near the 9.77300 level, which was broken quite regularly from the 19e until 31st of August in range cycles. It should be noted that a low near 9.46300 was seen on the 11the of August. However, USD/NOK traders will definitely note the 14e from July a high of 10.35000 was tested. The difference in values is highlighted to show the dynamic nature of USD/NOK and why it should be treated with effective risk management.
Commodities and interest rates are a huge factor for USD/NOK
As USD/NOK moves in a way that often mirrors global Forex, the currency pair’s ability to deviate from the standard technical moves of its peers should be taken into consideration. The factor that USD/NOK is also affected by commodity prices is important. Yes, US Federal Reserve interest rate considerations factor into the values, but the price of crude oil is too fundamentally an important part of the equation, and makes the USD/NOK sometimes seem to drifting and unrelated to other major currency pairs.
- Values within USD/NOK are now trading close to the significant resistance created in July of this year.
- If USD/NOK’s bullish trajectory remains solid, the realm of 10.27000 should be watched for reactions.
The higher realms of USD/NOK may look overbought, but jittery global behavioral sentiment is causing turbulence in Forex and equity markets. USD/NOK is not immune to US Federal Reserve interest rate policies. The fact that Crude Oil prices have made all-time highs could also play into USD/NOK’s uptrend at the moment. Speculators who believe the USD/NOK has been overbought should practice sound risk-taking tactics if betting short.
The short term will likely remain dynamic for USD/NOK with lots of fast trading. If an up move were to be triggered and resistance is challenged near the 10.27650 realm, it could trigger another short-term leg up. Fast trading should be done with strong entry price orders and the use of stop loss and take profit techniques. USD/NOK short-term buying on slight dips towards current support levels may attract bullish speculators today.
Norwegian krone short-term outlook:
Current Resistance: 10.27648
Current Support: 10.23700
High Target: 10.30000
Low target: 10.20530
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