By Dan, ForexYard – EUR/NOK has been stuck in a prolonged downward trend for sometime now. As will be shown through a variety of technical indicators, the pair is due for an upward correction in the near future.
The following is the Forexyard daily chart for EUR/NOK. The technical indicators used are the Bollinger Bands, Relative Strength Index (RSI) and the Stochastic Slow.
1. As seen in the chart, price ticks from the last several days have begun to dip below the lower Bollinger Band. This typically indicates that an upward correction will take place soon.
2. This theory is supported by the RSI, which is clearly below the lower support line, indicating the pair is currently trading in oversold territory. Traders can take this as a clear sign that the pair is due for a bullish trend.
3. The Stochastic Slow lines are currently crossed below the lower support line. This is also a sign that upward movement for the pair could occur in the foreseeable future, further corroborating our stated theory.
Forex Market Analysis provided by Forex Yard.
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