We see a five-wave rally in the making up from 8.065 level, which can be labeled as a higher degree red wave 1). Red wave one is, in this case, an impulsive wave, which is the most common motive wave.
An impulse is a structure by five sub-waves in the direction of the stronger trend. After its full development, a temporary three-wave pullback is expected to occur.
Now, as we look closely, we can see that price is unfolding sub-wave 5 of 1), the final wave of this impulsive structure, which can look for resistance and a bearish reversal near the 8.76 area. At the mentioned zone, a temporary three-wave correction may unfold, labeled as wave 2) which can later look for support and a new bounce at the 8.4355 swings low. Usually, former wave fours can react as good support for the unfolding corrections.
USDNOK, Daily
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