On the 4h chart of crude oil we can see that price made a nice rally from the lows, for now in three waves but because of strong bullish momentum with sharp price action up to 161.8% Fibonacci ratio, we believe market made wave 3) as part of a bullish impulse. That said, current downward reversal is probably wave 4) that can move back down to 45-46 area, the region of two common Fibonacci ratios for wave four corrections, 23.6 and 38.2, from where a new turn up would be expected.
Crude OIL, 4H
A week back or so we posted our view on USDNOK, not so popular pair for traders, but it may be interesting sometimes if we consider a strong positive correlation between the dollar and the Norwegian krone. When crude oil is in a bullish trend you will typically see NOK moving up, thus falling USDNOK. well, we know that oil is in nice uptrend for the last few weeks while USDNOK is down. We see nice bearish impulse on 4h chart with more downside to come in the very near term as minor recovery looks like a wave four.
USDNOK, 4H
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About Gregor Horvat
Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/ Try EW-Forecast.com’s Services Free For 7 Days athttp://www.ew-forecast.com/service
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