FxWirePro: USD/NOK rallies to 2-1/2 month peak, next hurdle seen at 9.4000
Tuesday, September 22, 2020 11:53 AM UTC
- The Norwegian Krone tumbled to a 2-1/2 month trough as the greenback surged against a basket of currencies.
- The dollar index held firm near 6-week highs, extending gains from the previous session, as markets turned risk-averse over a surge of virus cases and new lockdown measures in Europe.
- On Monday, the Norwegian currency plunged nearly 3 percent as both oil benchmarks fell around 4 percent, hit by rising concerns that an increase in coronavirus cases in major markets could spur fresh lockdowns and hurt demand.
- USD/NOK trades 0.8 percent higher at 9.3194, having touched a high of 9.3681 earlier in the session, its highest since July 15.
- The pair rose as high as 9.3353 the day before but retraced to close nearly 1.9 percent up at 9.2485.
- Immediate resistance is located at 9.3803, close above could take it till 9.4030.
- On the downside, support is around 9.2200, break below could take it till 9.1828.