USD/NOK traded higher yesterday, after hitting the prior downtrend line that’s been taken from the high of December 10th. That said, the advance was stopped near the peaks of January 3rd and 6th, at around 8.855, and then, it started oscillating around that barrier. As long as the rate is trading above the aforementioned downside line, we would consider the short-term outlook to be slightly positive and we would expect the bulls to refuel at some point soon.
If they do so, they could soon aim for the 8.895 level, marked by the high of December 27th. A break above that zone may pave the way towards the 8.940 area, defined by the inside swing low of December 23rd. Another break, above 8.940, could extend the advance towards the peak of that day, at around 8.985.