💡What if you have $5000 or €5000 or £5000 and you want to take some risk going into the 2nd half of 2019…what do you buy or sell? Well, we think it is time to go ‘Short’ (meaning sell) USDNOK expecting a rally in the Norwegian Krone in the next 3 months. The US Dollar is overvalued more than +11% and historical evidence seems to open doors for a -3.50% to -6.40% pullback from this level. All in all, the stars are aligning for us to take this trading opportunity today.
🔻USDNOK | Trading Scenario
📌 Norges Bank (Norway’s Central Bank) seems in a ‘collision course’ to hike interest rates on June 20th. The mentioned scenario comes from strong domestic data. On the other hand, the Federal Reserve seems against the wall (again) to save markets and FedWatch indicates 97.9% for rate cuts in December 2019.
📌Oil (WTI) trading at $53.10…for how long? The latest low at $42 serves as strong historical support. Note: Goldman Sachs has not changed their 2019 oil price forecast at $59.50 per barrel.
📌8.77/8.86 region has the majority of stops. We applied Hawkeye Traders ‘Trend + Stop’ indicator to gives us the edge. Although, nothing is set in stone, knowing where is the risk helps us to measure our potential losses in case this idea does not evolve as expected.