Weekly Forex Update: USD/NOK

USD/NOK has recently completed the high Quality Up Channel chart pattern identified by Autochartist on the daily charts. The overall Quality of this chart pattern is measured at the 8 bar level which reflects the following values of the contributing Quality indicators: significant Initial Trend (rated at the 7 bar level) and near maximum Uniformity and Clarity (both rated at the 9 bar level). This chart pattern reverses the previous upward correction to the prevailing downtrend visible on the daily and the weekly USD/NOK charts.

The first two connecting points of the upper resistance trendline of this Up Channel (points A and B on the chart below) formed when the pair reversed down from the combined resistance lying at the intersection of the round price level 6.0000 and the Fibonacci Cluster made out of the 50% Fibonacci Retracement of the preceding downward price impulse from the June of 2010 and the 38,2% Fibonacci Correction of the longer-term preceding down move from the March of 2009 (as is shown on the second chart below). The top of this chart pattern (at point C) formed when the price reversed down sharply from the longer-term downward-sloping resistance trendline built on the starting pivots of the aforementioned preceding downward price impulses. The sharp downward impulse from C broke through the support trendline of the preceding upward correction and through the support trendline of this Up Channel with Breakout, whose strength is measured at the highest 10 bar level. The pair is expected to fall further in the direction of the Forecast Area set between price levels 5.7504 and 5.8506.

The weekly USD/NOK chart below shows the aforementioned technical price levels