USDNOK can be unfolding a bigger flat correction, with a three-wave drop within higher degree wave A) that found a low at the 8.04 level. Current rally that is in play can be part of sub-wave C of B), which can take price towards the 8.82 area, where former swing high can react as resistance and push the price into a bearish reversal. A later drop below the 8.51 level and in impulsive fashion would confirm a completed wave B) and more weakness into wave C).
A flat is a three-wave correction where wave A and B have both three sub-waves. The final wave C has five legs.
We have three types of flat correction: Regular expanded and the running flat.
An example of a flat correction (regular flat):
Below we have a bigger picture of the USDNOK pair, where we see a five-wave recovery within higher degree wave 1, which can now be followed by a temporary pullback as wave 2, with possible support and a turning point zone around the 8.4/8.1 zone.