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31 Jan 2017
SAR still trailing the falling USD/NOK rate
We see an injection of volatility in the already heavy looking USD/NOK pair.
The washout in today's trading has expanded the Bollinger® bandwidth indicator for four consecutive hours beyond the maximum width seen in a week of trading. Moreover, the same 1hr charts show recent close prices printing below the 50-period EMA, a bearish condition that should it persist, would help keep the SAR indicator trailing above the price.
A change of direction would be quickly noticed by the SAR, implying USD/NOK shorts are taking profit. Risks exist the volatility and the plummeting price action extend to higher time frames.
The washout in today's trading has expanded the Bollinger® bandwidth indicator for four consecutive hours beyond the maximum width seen in a week of trading. Moreover, the same 1hr charts show recent close prices printing below the 50-period EMA, a bearish condition that should it persist, would help keep the SAR indicator trailing above the price.
A change of direction would be quickly noticed by the SAR, implying USD/NOK shorts are taking profit. Risks exist the volatility and the plummeting price action extend to higher time frames.