Did the USDNOK put in a false breakout?

Tomorrow we have the FOMC and it is widely expected the Fed will cut rates once again. The tone will set the pace for the USD tomorrow afternoon. However, if the FOMC is a little more dovish than expected the risk of the USDNOK reversing lower is high.

RSI has been divergent on this move to new highs and today we actually had a false break of the upper channel resistance only to close back below. A move tomorrow back below the 9.2000 level could signal a bigger reversal may be in play for the pair. The long upper shadow doji on the daily candle is not doing bulls any favors either.

Blake Morrow