- The Norwegian Krone plunged to fresh record lows after the oil prices collapsed by more than 30 percent as Saudi Arabia, the world’s top exporter, vowed to cut prices and raise its production significantly.
- Saudi Arabia slashed its official selling prices and made plans to increase crude output next month after Russia balked at making a further steep output cut proposed by the Organisation of Petroleum Exporting Countries to stabilise oil markets.
- USD/NOK trades 3.05 percent higher at 9.5238, having touched an all-time high of 9.6056 earlier in the session.
- The pair briefly rose above the 9.6000 handle, but failed to sustain gains.
- Momentum indicators are bullish: RSI strong at 69 Stochs are biased higher and MACD supports upside.
- Immediate resistance is located at 9.6155, and close above could take it till 9.6234.
- On the downside, support is around 9.2247, break below could take it till 9.2152.
Recommendation: Good to buy on dips around 9.2414, with stop loss at 9.2247 and target price of 9.6155.
