FxWirePro: USD/NOK slumps to 1-week low, finds support at 200-DMA
Wednesday, July 1, 2020 10:59 AM UTC
- The Norwegian Krone surged to a 1-week peak as oil prices rallied after a decline in U.S. crude stocks suggested demand rise.
- Crude oil prices rallied to a 1-week peak after an industry report showed crude stockpiles in the United States fell more than expected, indicating demand is improving even as the coronavirus outbreak spreads around the world.
- Data released by the American Petroleum Institute (API) late on Tuesday showed, U.S. crude and gasoline stocks fell more than expected last week, while distillate inventories rose.
- Crude inventories declined by 8.2 million barrels to 537 million barrels, against forecasts for a draw of 710,000 barrels.
- Moreover, the Norwegian currency was also supported by data showing Norway's DNB Manufacturing PMI increased to 48.9 in June of 2020 from a downwardly revised 44.9 in the previous month.
- USD/NOK trades 0.3 percent lower at 9.5847, having touched a low of 9.5232 earlier, its lowest June 24.
- On Tuesday, the pair rallied to a 2-week low at 9.7688 but found strong resistance at 55-EMA to close 0.6 perent lower at 9.6178.
- Major resistance 55-EMA at 9.7893
- Major support 200-DMA at 9.5234.
- Immediate resistance is located at 9.6621 (5-DMA), close above could take it till 9.7185.
- On the downside, support is around 9.4881, break below could take it till 9.4420.