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- The US dollar initially gapped at lower to kick off the trading week against the Norwegian Kroner but has turned around to show signs of strength.
- The question now is, can we break above the 11 level and go looking to the 11.10 level, an area that has been a very difficult resistance barrier for some time.
- This could continue to be a major factor in this pair going forward, especially as it is a minor pair, and they tend to be very technical by their nature.
We do take off and break above there so that we can get more or less a buy and hold type of scenario in that environment. The measured move would be to reach the 11.6 zero level. That being said, we have a lot of noise this week when it comes to the U S dollar specifically. I mean, after all, we have the U S elections today and then again, we have the federal reserve interest rate decision on Thursday, both of which have the ability to knock the US dollar around quite violently.
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So, with that being said, it would not surprise me at all to see a little bit of a pullback. But I think it ends up being a buying opportunity before it's all said and done. While the Norwegian Kroner is only thought of as an oil currency, the reality is that the United States is one of the biggest producers of crude oil in the world. So that whole petroleum dollar negative inverse correlation has pretty much gone by the wayside, and therefore the Norwegian Kroner doesn't get that bonus against the greenback. That being said, I'll be watching for a pullback to offer some type of value, or perhaps a breakout in a continuation play. Keep in mind that if this happens, you probably will be looking at the US dollar strengthening against several other currencies as well.
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