In recent months, flags, acting as the trend continuation figures, have been regularly formed on the chart of the USDNOK currency pair. A sharp growth is replaced by the flat (which is opposite to the main trend), followed by a new surge upwards.
Yesterday, we witnessed another exponential increase of USDNOK. Considering the pattern of previous cases, the upward movement may continue for several more days before it is replaced by a flat. USDNOK’s medium-term upside potential remains, with the currency pair moving above the level of 12 in the spring of 2020. Therefore, there is enough room for a few more flags to form.