A clear descending triangle pattern has developed on the daily chart of the USD/NOK and many analysts are now expecting a bearish breakout in the coming days. A descending triangle formation historically represents a bearish signal.
The chart shown below is the USD/NOK daily chart provided by ForexYard. Support and resistance lines are indicated by corresponding letters and numbers (R = resistance; S = support).
– We can see that the latest candlestick on the chart is a doji candlestick, which represents a reversal to the previous movement. This means we may expect a short uptick before any bearish breakouts can occur.
– The moment to watch for is the breakout beyond the lower level of the descending triangle. The price of 6.3200 marks this lower border.
– Below this price level we have a number of psychological barriers which may indicate profitable targets. The first support line sits at 6.2500, followed by 6.1500, and ending around 6.0600.
USD/NOK – Daily Chart
For more Scandinavian news, read my article “Swedish Currency in Position for Muted Gains.”
