USDNOK Bearish Leg, S&P500 Breakout

Grega Horvat

USDNOK is unfolding a nice bearish leg, which we see it as blue wave one and now wave two in the making. We can see first wave one fully unfolded, so upcoming reaction higher can be the following wave two that may later search for resistance near the Fibonacci ratio of 50.0 or 61.8 and make a new drop lower.

USDNOK 4 Hour Chart

USDNOK 4 Hour Chart

S&P500 made a breach higher, out of a triangle pattern last week, which is a sign of a bullish continuation. We so see wave 4 completed near the 2547 region and recent recovery as sub-wave i and ii of 5. From current levels, we expect price to continue higher, towards the Fibonacci ratio of 200.0. However, if price drops lower and breaks below the former wave 4 swing low, then we can say that bigger wave 5 was completed at recent high and now a change in trend is in progress.

S&P 500 Hourly Chart

S&P 500 Hourly Chart

Source: www.ew-forecast.com

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