| USD/NOK Ready to Resume Downtrend |
| Written by Roger Stojsic |
| Tuesday, 29 September 2009 |
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The USD/NOK may be ready to take another turn south as prices are starting to come down off significant double-top resistance near 5.8671. In addition to the double-top, this level also reflects the convergence of two separate, but intertwined, bearish Gartley patterns (one in pink, and the other in purple in example below) making for an exceptional amount of converging resistance further increasing the odds of at least a temporary bearish reversal. As a result, we've taken on a short position at market (5.8506). Now, if prices instead move higher a break above the double top (5.8671), then a potentially strong bullish continuation move may be in progress. Having said that a stop-loss has been placed a few pips above this level at 5.8747 (taking into account the spread). As for profit targets, T1 is set just above 61.8% of the purple AD at 5.7973, and T2 just above 161.8% of AD at 5.6772)
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