Mapping the Market: Norwegian krone could be in for more losses
UUP•Chart levels and signals
- Bullish flag pattern after a 50% retracement of the dollar's prior rise against the krone
- Bullish RSI divergence and bullish engulfing candlestick signal fading downside momentum
- Next targets for dollar gains: 9.67-9.6850, then 9.78-9.80 and the 10 level
Reuters market commentary note
(Daily markets commentary from Reuters analysts on the signals financial charts are sending - and what they might mean.)
(Christopher Romano is a Reuters market analyst. The views expressed are his own; Editing by Burton Frierson and Chizu Nomiyama )
Technical signals point to further krone कमजोरी
Norway's currency has whipsawed this year as the price of oil and investor sentiment have ebbed and flowed on Iran war concerns, but technical analysis indicates that the krone may now be set to weaken against the dollar.
Click here for a detailed technical analysis chart.
Norway is a major oil producer, so the krone gained in value at various times during the conflict as the price of crude skyrocketed. The Norwegian exchange rate is usually quoted in krone per dollar, so it strengthens against the U.S. currency as the line on its chart falls.
After reaching its strongest in four years in early May, at 9.1540, the krone weakened to 9.9590 by the end of June. Since then, it has been reclaiming some of those losses, but the manner in which it is doing so could be cause for concern for krone bulls.
