FxWirePro: USD/NOK retreats from 2-1/2 month low, faces resistance at 5-DMA
Thursday, May 21, 2020 10:54 AM UTC
- The Norwegian Krone declined after rising from four straight sessions, as the greenback rallied across the board.
- The greenback against a basket of currencies traded 0.1 percent up at 99.22, having touched a low of 99.00 on Wednesday, its lowest since May 4.
- However, the Norwegian currency trimmed some losses as crude oil prices surged to multi-week peaks.
- Crude oil prices advanced to an over 2-month peak as a drawdown of U.S. crude inventories and output cuts by major producers helped ease concerns about a supply glut.
- International benchmark Brent crude was trading 1.7 percent higher at $36.44 per barrel by 1045 GMT, having hit a high of $36.70 earlier, its highest since March 11. U.S. West Texas Intermediate was trading 2.2 percent up at $34.22 a barrel, after rising as high as $34.46 earlier, its highest since March 11.
- USD/NOK trades 0.3 percent up at 9.9295, having touched a low of 9.8862 the day before, its lowest March 13.
- On Wednesday, the pair plunged to an over 2-month low but retraced to close 0.7 percent lower at 9.8999.
- Immediate resistance is located at 9.9772, close above could take it till 10.0047.
- On the downside, support is around 9.8788 break below could take it till 9.8568.