USDNOK has been on a downward streak from the back end of 2020 as prices fell to multiple-year lows. Bears have looked to maintain the trend, however, a hint of exhaustion has crept in.
A bounce at the mentioned lows has seen a slight upturn in fortunes for the currency pair, as prices have now broken through the 23.6% of the 9.59/8.35 downside Fibonacci leg.
The recent hidden bullish divergence noted on the momentum indicator could reverse the recent bearish trend to the 38.2% level.
The break past the Ichimoku cloud indicates that the bias has now turned to the upside. This will be more evident should the candlesticks maintain their grip above the top border.
A short-term perspective indicates a V-shaped recovery that has seen prices break past the recent peak.
Should this momentum be supported, then this could negate the recent bearish divergence. As a push to monthly highs ensues, a keen eye will focus on the Ichimoku indicators, which could possibly halt the ascension.
The psychological $9 barrier will be the next target, as this could make way for a full recovery in the medium-term.
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