The USD/NOK is breaking out of what “should” be a bullish wedge (defined by higher lows and equal highs and typically will break higher) but is actually breaking lower. This break lower also coincides with crude oil, which also looks like it is trying to form some sort of near term low. For those who are unaware, the NOK and Oil tend to have a strong correlation due to Norway’s being one of Europe’s largest oil exporters.
One other note. The recent highs also are a 127% Fibonacci extension of the highs 2008 to the lows in 2011.
Blake Morrow
Chief Currency Strategist, Wizetrade
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