USD/NOK has recently broken its long-term uptrend, to now being in a long-term downward pattern. However, from its current position will it move back up to the 0.718 level or back down to the 0.5 level?
Let's look at 2 different ideas:
(1) If you look at purely technicals alone, going with the long-term trend, one would have to say back down to the 0.5 level.
(2) However, counteracting this downward trend, is the price of Brent oil slowly sliding downwards, affecting the rate of growth of Norway's economy (~70% of Norway's exports are oil & gas).
Let's look at 2 different ideas:
(1) If you look at purely technicals alone, going with the long-term trend, one would have to say back down to the 0.5 level.
(2) However, counteracting this downward trend, is the price of Brent oil slowly sliding downwards, affecting the rate of growth of Norway's economy (~70% of Norway's exports are oil & gas).