As we can see from the chart, from 2000 onwards, the two variables have followed the same trend and the recent weakness of the Nok (reached 7.00 area against the US dollar) has been accompanied by a similar drop of the Brent (in the upper panel on inverted scale). On the Norwegian krone we have already offered investment ideas on several occasions http://www.smarttrading.it/1/id_7280/Unidea-diinvestimento-inScandinavia-.asp and in less than a month are already producing a potential profit of 3%. What we want to emphasize, however, is the cyclical nature of the movement of USDNOK and therefore probably of the Brent. With an enviable precision USDNOK tends to alternate between primary tops and lows every 31 quarters with the next event (which should be a maximum) provided between the first and second quarter of 2016 (graphic source: Bloomberg).
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