- The Norwegian Krone rebounded from record lows as oil recovered on hopes that a price war by top producers Saudi Arabia and Russia will not be sustained.
- The recovery in the Norwegian currency was also supported by hopes for global stimulus measures to cushion the economic impact of the coronavirus outbreak
- USD/NOK trades 1.1 percent lower at 9.4694, having touched an all-time high of 9.6056 the day before.
- On Monday, the pair briefly rose above the 9.6000 handle, but failed to sustain gains.
- Momentum indicators are bearish on hourly charts: RSI weak at 44 Stochs are biased lower and MACD supports downside
- Immediate resistance is located at 9.6059, and close above could take it till 9.6155.
- On the downside, support is around 9.4425 (38.2% retracement of 9.1788 and 9.6056), break below could take it till 9.3922 (50% retracement)
Recommendation: Good to sell on rallies around 9.5698, with stop loss at 9.6015 and target price of 9.4425.
