USD/NOK forms a dark cloud cover

A bearish reversal pattern has been detected on the USD/NOK daily chart.

Demand couldn't be sustained and the exchange rate lost ground, falling below the midpoint of the previous candle's body. This pattern indicates an opportunity for traders to capitalize on a trend reversal by positioning themselves short at the opening of the next candle.

It may also be used as a warning sign for bullish positions as the exchange rate is reacting to overhead supply.