FxWirePro: USD/NOK breaks below 200-DMA, outlook remains bearish
Wednesday, June 3, 2020 10:27 AM UTC
- The Norwegian Krone surged to a near 3-month peak following the release of better-than-expected current account figures.
- Norway's current account surplus rose to NOK 66.08 billion in the first quarter of 2020 from NOK 25.1 billion in the previous quarter, surpassing forecast of NOK 50.7 billion.
- Additionally, a rise in the crude oil prices and weakness in the greenback supported the Norwegian currency.
- Crude oil prices rallied to multi-month highs, bolstered by lower U.S. inventories and expectations OPEC+ will keep oil output cuts in place.
- USD/NOK trades 0.4 percent down at 9.4972, having touched a low of 9.4595 earlier, its lowest March 10.
- The pair broke below major support 200-DMA but retraced to trade around the 9.5000 handle.
- Immediate resistance is located at 9.6086, close above could take it till 9.6237.
- On the downside, support is around 9.4396 break below could take it till 9.4126.