By Russell Glaser – The USD/NOK shows a clear support zone that once broken may allow momentum to drop the pair back to its October low.
Looking at the daily chart, the 5.9300 level has served as a major area of both support and resistance over the second half of the year. The failure of the pair to breach this level in August, the resistance from the double top in October (at the 5.7000 level), and now in early December gives traders a clear entry point short.
A breach below 5.9300 may bring the pair to test the October low of 5.7017. A protective stop may be placed above yesterday’s high at a level of 6.0500. This would give traders a respectable profit to risk ratio of 2:1
Forex Market Analysis provided by ForexYard.
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