- The Norwegian Krone slumped to a fresh record low as oil prices fell again, adding to steep losses in the previous session.
- Oil prices declined after the U.S. banned travel from Europe following a declaration that the coronavirus outbreak is now a pandemic.
- The selling pressure intensified after the United Arab Emirates followed Saudi Arabia in announcing plans to boost oil output after the collapse last week of an agreement between OPEC, Russia and other producers.
- USD/NOK trades 3.5 percent higher at 10.0301, having touched an all-time high of 10.1021 earlier.
- Momentum indicators are bullish: RSI strong at 83, Stochs are at overbought levels and MACD supports upside
- Immediate resistance is located at 10.1180, and close above could take it till 10.1590.
- On the downside, support is around 9.6349 (50% retracement of 9.1788 and 10.1021), break below could take it till 9.5298 (61.8% retracement)
Recommendation: Good to buy on dips around 9.7020, with stop loss at 9.6349 and target price of 10.1180.
