A top is made in USDNOK?Since the recent high of 8.60, we have now a set of lower high and lower low. The pair is now testing earlier floor (support) as resistance. If we manage to turn down from current levels (8.42+), we should retest the recent lows around 8.33.
In that matter, we should have a nice risk/reward for a short-setup in USDNOK. Short from 8.41-8.44 which stop above 8.46 and target 8.33 and below (can trail from these levels).
USDNOK
Possible shortterm top in USDNOKUSDNOK has been in a strong uptrend so far this year. However the recent move up seems a bit strechted as the sellers did find som ground on monday with a ''doji-formation''. Furthermore, we did see another larger sell-off yesterday which confirms the possibility for a shortterm top in this pair.
Stoch RSI is also on elevated levels and have a possible bearish crossover, while RSI have lower highs and a clear divergence between momentum and price.
In this matter, the risk/reward seems good to take a short-position. Stop should be set to 8.60 while target price is set to 8.30.