The month of March was very volatile for USDNOK.
USD surged 9000+ pips against the NOK. From the swing low of 9.1793 to the peak high of 12.1186, the pair was knocked off its feet by posting all-time highs.
Price is currently on a retrace lower and has covered over 50% of the March rally. There is a higher probability of this drop extending further to or around the 9.8000 handle.
The daily chart above cuts through the majority of the noise and shows the prominent support & resistance structure on the chart.
It suggests that yesterday’s swing high is the resistance in play and while we hold or keep closing under it, we have a potential drop accelerating towards the 9.800 handle.
The 4-hour suggests price has gotten into a wider channel (blue trendline). The upper blue trendline is the resistance patch for any rally upward. The lower blue trendline should provide support if and when price comes to it.
The 4-hour chart mirrors daily resistance of yesterday’s high but also carries on extended resistance due to its broader channel play. Nevertheless, it also favors the drop in line with the daily chart.
This support also coincides with the daily support to around the 9.800 handle.
The dotted blue trendline within the main channel trendline, is the initial support & resistance. These dotted trendlines are expanding in their respective directions and eventually will merge in with the main channel support and resistance.