Tag: USDNOK Analysis

Why I have not traded the EURUSD in the last weeks

I like to trade the currency pairs that have a clear market condition, when they consistently go from one important level to the other (i.e. support to resistance or vice versa), and certainly the EURUSD doesn’t have a clear condition. Take a look at the next chart:

On the chart above, does it look like a clear market condition to you? No. Do you know where the market is likely to reverse back? No, it just gets rejected from different levels (random levels), we can’t even call them support and resistance levels.

Now, take a look at the next chart:

This is the Norwegian krone (USDNOK), this one on the other hand, has clear support and resistance levels. It gets rejected consistently from the same support and resistance levels. On this chart, do you know where the market is likely to get rejected? Yes, once it gets close to the bottom of the range it is likely to get rejected, likewise, when it gets closer to the top of the range, it gets rejected.

See the difference? Which one is easier to trade? Definitely the second one, in fact, I wouldn’t even try to trade the first one. I’ll just wait until it gets clearer.

Trade Safe!

Raul Lopez
Forex Training

EURUSD Analysis, USDNOK Analysis

USDNOK – Broke the upper extreme of the range

Earlier this week the USDNOK was trading close to an important LT level, and as you already know, when the market trades close to an important LT level, it forms a range in the short term charts, and we need to wait for the market to break that range before looking for trade opportunities. Well, it just broke the top of the range:

This triggered a bullish condition and long opportunities are in play. As long as the USDNOK trades above 5.4357 I’ll be looking for long opportunities.

The next LT resistance level is at 5.5845

Trade Safe!

Raul Lopez
Forex Education

USDNOK Analysis

USDNOK – Trading around a LT level (5.3352)

Last week I got a few emails asking me about the USDNOK, we had it trading in a bearish market condition but it already reached the main long term support level.

When the market gets close to an important LT level, we need to determine the zone on the short term charts, this way we can have a trading plan and will know exactly what the market needs to do in order to start looking for trade opportunities. This is the zone on the USDNOK (defined by both green levels):
From this chart we can conclude the following:

1. It is trading in a well defined short term range (clear S&R levels), therefore we can trade accordingly, look for short opportunities around the top of the range and longs around the bottom of the range.

2. We have determined the zone that the USDNOK needs to break in order to start looking for trade opportunities. A break of the upper extreme will trigger a bullish condition, while a breakout of the bottom of the range will trigger a bearish condition.

Trade Safe!

Raul Lopez
Forex Course

USDNOK Analysis

USDNOK – Do you trade this pair?

I don’t think a lot of traders focus on the USDNOK, but let me tell you something, this one is probably one of the clearest currency pairs to trade these days. It is strongly correlated to the EURUSD (negative correlation) and it has pretty consistent support and resistance levels:

It goes smoothly from on level to the other… You know how to trade this market condition right?

Anyway, do you trade the USDNOK?

Trade Safe!

Raul Lopez
Forex Course

USDNOK Analysis