USDNOK will hit psychological as Oil approaches support
USDNOK is strongly anti-correlated to the prices of oil. Although the US imports most of its oil from Canada, some of the oil producers there are owned by a Norwegian company. Then, the prices are moving globally with oil being one of the most traded commodities.
Last time they USDNOK and USOIL both hit a psychological resistance, both reversed at the same time. USDNOK has fallen sharply from 9.0 level as oil has risen from a 65 level. Later on, the oil went for 200 EMA and USDNOK returned to 9.0 and bounced again.
I don't see any fundamental basis for cheaper oil. Even if there are lockdowns, they will be fairly limited and then, the demand is bound to stay high. Even more so with Europe concerned about winter and Japan starting to use its reserves soon.
So I find it very likely that Oil might stop and reverse at 75 or 70 level where the price meets 200 EMA, also. Of course, at that time, USDNOK will be around the level of 9.0 and that's when Norwegian Krona started to gain strength against US Dollar.
When the price action on both pairs supports the idea, I will be shorting.
Last time they USDNOK and USOIL both hit a psychological resistance, both reversed at the same time. USDNOK has fallen sharply from 9.0 level as oil has risen from a 65 level. Later on, the oil went for 200 EMA and USDNOK returned to 9.0 and bounced again.
I don't see any fundamental basis for cheaper oil. Even if there are lockdowns, they will be fairly limited and then, the demand is bound to stay high. Even more so with Europe concerned about winter and Japan starting to use its reserves soon.
So I find it very likely that Oil might stop and reverse at 75 or 70 level where the price meets 200 EMA, also. Of course, at that time, USDNOK will be around the level of 9.0 and that's when Norwegian Krona started to gain strength against US Dollar.
When the price action on both pairs supports the idea, I will be shorting.
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