Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/NOK Forecast: US Dollar Continues to Struggle Against Krone

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • The US dollar initially rallied against the Norwegian krone during the trading session on Friday, but just as we have seen during the previous session on Thursday, the buyers were squashed, and we ended up turning around to form a bit of an inverted hammer.
  • This of course is a fairly negative turn of events, and the fact that the market is done this to days in a row is of course a very negative turn of events.

USD/NOK Forecast Today - 20/05: USD Struggles vs NOK (Chart)

The Technical Analysis

The technical analysis in this market is quite interesting, as we ended up forming a bit of a significant inverted hammer, especially the fact that we have done it 2 days in row. We are sitting on top of the 200-Day EMA indicator, which of course is very important. This is an indicator that a lot of people will be paying close attention to, as it can quite often determine the overall long-term trend.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

That being said, if we were to break above both of these inverted hammers, then it opens up the possibility of a move to the 10.80 level, possibly even as high as 11 NOK. That’s an area that we have seen a lot of resistance at previously, so to be interesting to see if we go there. On the other hand, if we were to break down to the downside, then the market could go down to the 10.50 NOK level, possibly even lower than that.

Looking at the Norwegian krone it’s important to realize that the interest rate differential between the NOK and the USD is minuscule in comparison to what things have been in the past, and it’s also important to recognize that although the Norwegian economy is highly sensitive to crude oil, the currency pair that we are dealing with here features to petrocurrencies, as the United States is a major driller for crude oil now as well. Because of this, it is a little bit different to what it once was, but at the end of the day oil can have a slight influence.

Not sure which broker to choose? We've made a list of the best forex brokers for you.

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Most Visited Forex Broker Reviews