EURNOK at RN

Good Evening Dynamic Traders

I hope you've all been having a successful few days on the markets. Yesterday saw some retracement on a number of pairs, but today many have gone back in the direction of the favoured trend again! So certainly some volatility around and for those who are day traders, there have been plenty of intra day pips for the taking! For the swing traders it's all part of the medium term strategy - patiently riding out the breathers.

I wanted to highlight the EURNOK tonight. I last mentioned this pair way back in early December where price was showing signs of weakening - and indeed it did. The trend is clearly down. In Oct-Nov time price did a deep pullback giving us the DT formation. Price then continued to weaken. You can see the general pattern of this pair - the moves down followed by consolidation.

















We're at a significant point with this pair now. Price is at a major RN - 8.000. With Monday's candle you can see the classic buyer/seller indecision at the RN - the markets weren't sure what to do and usually sellers start closing their positions in fear of price bouncing up. But today we have a bearish day and as we speak a possible bob of Monday's low.

Should price close beyond the support and RN we could see a continuation with the trend. ST is also forming another false bar. MOBO could be used here or for a safer trade a break and close of the support/RN and apply ESLT for extra armour. Of course price could do a FBO or even find support and bounce back up. But odds suggest a continuation could be on the cards!

As always please carry out your own analysis before placing any trades.

Abundant Trading!
Sonia Molina