USDNOK Could Drop 6% as Central Bank Holds Rates
The Norwegian Central Bank has opted to keep interest rates unchanged at 4.5%, aligning with market expectations. This decision leaves USD/NOK near a key support level around 10.42, close to breaking below a double bottom pattern. This double bottom forms part of a larger descending triangle, which points to a potential downside target of 9.81, a significant 6,000-pip drop for the Norwegian krone.
However, a swift decline to such lows seems unlikely. Instead, more realistic targets are 10.27 and 10.05, with the latter one align with the lows from December 2023. The bearish pattern will be triggered if USD/NOK breaks below 10.42 and will remain valid as long as the pair trades under 10.50.
In the near term, traders should watch the 10.42 level closely for any confirmed break, which could signal further downside pressure on the krone.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
However, a swift decline to such lows seems unlikely. Instead, more realistic targets are 10.27 and 10.05, with the latter one align with the lows from December 2023. The bearish pattern will be triggered if USD/NOK breaks below 10.42 and will remain valid as long as the pair trades under 10.50.
In the near term, traders should watch the 10.42 level closely for any confirmed break, which could signal further downside pressure on the krone.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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