FxWirePro: USD/NOK halts 2-day winning streak, finds resistance at 10.6506
Tuesday, March 31, 2020 10:17 AM UTC
- The Norwegian Krone rose, halting a 2-day losing streak as the central bank further raises its purchase of crowns.
- On Tuesday, Norway's central bank stated that it will further increase its daily purchase of Norwegian currency to 2 billion crowns per day from 1.6 billion crowns earlier, selling foreign currency to fund government spending.
- However, the upside in the Norwegian currency appears limited as general public’s domestic loan debt increased 4.8 percent year-on-year to NOK 6,081 billion at the end of February, easing from a 5.0 percent rise in the previous month and below market consensus of a 5 percent gain, its weakest growth since December 2016.
- The pair continues to float above 20-EMA, break below could test 21-DMA.
- USD/NOK trades 0.5 percent lower at 10.4687, having touched an all-time high of 12.1224 earlier in the month.
- Momentum indicators are bearish on hourly charts.
- Immediate resistance is located at 10.6811 (7-EMA), and close above could take it till 10.7290.
- On the downside, support is around 10.3976 (20-EMA), break below could take it till 10.2864.