Usdnoklong
USDNOKOn the monthly charts we have a confirmed bearish trend. Presently, on the monthly charts, we have a bullish correction that we can trade.
On the weekly charts we have a shift in order flow confirming our bearish bias though its a long term view. We have an impulsive bearish move that has necessitated a bullish correction to clear previous disequilibrium.
On the daily charts we have a minor shift in order flow from bearish to bullish that we seek to trade.
USDNOK Elliot Wave 4 Hour ChartUSDNOK has a trading opportunity to the upside. In line with the USD index being bullish, there's high potential for the pair to follow suit. It suggests the formation of a regular flat, and the C wave is about to start. The smaller regular flat outside the channel has reached equal legs (100% fib extension) and might turn upside any where within the box. I'll check for trading opportunities there, but right now there is no clear indication of the a trade to the upside. It might tag the lower side of the box and then have an aggressive push to the upside.
Long opportunity for long termI expect to usd/nok prices go higher until mid of 2024,
It looks like From 8.50 to 8.40 range best place to long usdnok right now 8.21 or 8.05 might be your SL place according to your position.
Long Position entry Location 8.40-8.50
SL:8.21 or 8.05
TP1: 11
TP2: 12.75
TP3: 13.60
TP4: 14.90
Potential good trade?Exotic markets are risky, but I see good indication on this one. Not risking crazy amount, but I put in my trade at 8.59. Looking to take profit on the way up. I would honestly wait to trade until the 1 and 7 day moving averages cross, as it seems to be a strong indicator on this chart. At around 9.00 I expect a continuation of the down trend. I will still be watching for the next indication for that as well. Lets see how it goes!
USDNOK,USDPLN & AUDJPY correlation trade on D1 ChartGREETINGS
This articles will be a follow up piece to the educational article I did on correlation trades in the forex market. Check out my article on CORRELATION-DIVERSIFYING-HEDGING-An-elementary-view
Now in a previous article that I wrote I had strongly suggested that the AUDJPY had reached a key level of resistance on the daily and weekly chart and was suggesting a possible short sell. Interestingly this was about 2 weeks ago and the price action hasn't really come down at the magnitude expected, except for today (21/12/2020). As I concluded the previous article I promised to explore the idea of how correlated pairs can be used to confirm break outs and avoid fake outs, and this is what we are going to do with the above currency pairs.
To start of we shall consider that pair that I had last made an analysis on, which was the AUD/JPY. This pair I had concluded had reached a crucial resistance level and therefore was ready for a sell. I realised at the time that currency pairs do not move in isolation so to avoid the risk associated with putting all my eggs in one "trade", I sought negatively correlated pairs to place a trade and potentially double up my profits while giving me the comfort of a diversified portfolio. I came across 2 pairs which had a -98% negative correlation and these pairs were the USD/NOK and USD/PLN.
So how we use such correlated pairs to confirm a break out and not a fake out is to closely monitor both pairs when there is a sudden move in the opposite direction by one pair, you observe the other to see if there is a corresponding move. This I learnt the hard way last week as the prevailing trend on the AUD/JPY was somewhat bullish, whenever it would reverse I would quickly look to put an opposing entry on the USD/NOK. I would not wait for the confirmation on that pair and guess what the USD/NOK would rally further down. this showed that the reversal on the bullish AUD/JPY was a fake out. Sure enough the AUD/JPY would go back up. Now that both pairs seems to be correlating perfectly I think it might be an opportunity here.
I have attached the chart which shows how these pairs look like a mirror image.
Now I will be looking for long positions "only when price action confirms". This confirmation will be in the form of a pin bar or bullish engulfing candle on the daily (D!) chart. So possible a buy stop or just put an alert at the open of the last bearish candle.
My outlook
My outlook for the USD/NOK and USD?PLN is to go long This view is long term and could possibly look beyond Jan 2021
My possible entries could be:
USD/NOK
Buy Stop 8.7416
Take Profit around 9.1400 and maybe let it run to 9.51
USD/PLN
Buy Stop 3.72
Take Profit around 3.88
As I said this could go beyond Jan 2021
Takunda Mudenge is a market analyst based in Zimbabwe, Africa. He writes in his personal capacity for educational and entertainment purposes. This should not be construed, assumed or viewed as investment advise. Please consul a professional for such.
Proposed Long USDNOK (trend continuation)Take a look at the daily chart too. After the massive bear trend, since Sep we have been mostly bullish.
As the H4 chart shows, a retracement to 38.2% was completed and I expect the bull trend to resume. The recent high at about 9.61 should be the 1st target, with a review of price action to determine the next possible steps.
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As always, please use sound money and risk management in all your trades.