Market Outlook: Bullish Flag and Bearish Shark Patterns in Focus

8 Jan

USDNOK

Key Technical Levels for USDNOK

Weekly Fractal Resistance: 11.47
Daily Fractal Support: 11.21
Monthly Fractal Support: 10.38 (formed in late September)
Breakout Resistance (December 2024): 11.13

These levels have been pivotal in guiding the pair’s movements, and it’s essential to keep an eye on them for future developments.

Bullish Flag Pattern in Play

One of the more notable formations in the current chart is the bullish flag pattern. This pattern suggests that the pair could see further upward movement, in line with the broader positive trend that has been in place since the formation of the monthly fractal support at 10.38 back in September.

The bullish flag pattern typically indicates that the market is taking a breather before continuing in the direction of the prior trend. In this case, the recent pullback to 11.21 (daily fractal support) could be setting the stage for a further rise toward the 11.47 resistance level, or even beyond it, if momentum continues to build.

Bearish Shark Pattern Projection

While the bullish outlook is present, traders should also be cautious of the emerging bearish shark pattern. This pattern, which began taking shape after the breakout above the monthly fractal resistance at 11.13 in December, projects a potential reversal at the 11.56 level, which coincides with the 224% Fibonacci extension.

Bearish Shark Pattern Implications

If the price reaches 11.56, this could signal a reversal and the start of a downward move.
A pullback could occur, testing the monthly fractal resistance at 11.13 or possibly even moving lower to 10.97, which is considered the default target for the bearish shark pattern.

Given the current position of the pair and the technical levels in play, it's important to be prepared for both bullish and bearish scenarios in the near term.


Happy Trading,
André