This week could be interesting from a fundamental analysis standpoint, because, quite important macroeconomic data delayed by the partial government shutdown will be published in the USA. We continue to technically analyze the FOREX market, looking for good speculative pairs.
This time USD/NOK attracted our attention.
Through technical analysis, we recognize the possibility of a rebound of the US Dollar upwards against the Norwegian Krone. The key elements that indicate the likelihood a rebound:
1. On the weekly chart, we see that the US currency is testing its support level, however, a reversal signal has not been seen;
2. On the chart, 1D TF, a ‘bullish’ divergence of the price chart with the MACD indicator histogram was formed.
3. The pair is hovering near the 200-period exponential moving average, as well as near the key Fibo level of 61.8% (8,3660)
So, opening longs for USD is encouraged when reversal signals appear, for example, when the price crosses the shorter moving average (level 8,4870) from bottom to top. The intersection should be confirmed by signals from the indicators.
The key fundamental factors that may affect the US currency are GDP and retails sales, which should be published on Wednesday, February 6.