FxWirePro: USD/NOK retreats from 4-week trough, faces resistance at 21-DMA
Friday, July 10, 2020 11:36 AM UTC
- The Norwegian Krone declined to a 1-week low, as the crude oil prices slumped on demand fears.
- However, upbeat economic data helped the Norwegian currency to erase early losses.
- Crude oil prices slumped to an over 1-week trough and were headed for weekly declines on worries that renewed lockdowns following a surge in coronavirus cases in the United States and elsewhere would suppress fuel demand.
- Norway's annual inflation rate edged higher to 1.4 percent in June from 1.3 percent in the previous month, in line with market expectations and its highest inflation rate since January. Meanwhile, core consumer prices in Norway increased 3.10 percent in June over the same month in the previous year, its most since August 2016.
- A separate report showed Norway's producer prices tumbled by 14.4 percent year-on-year in June, after a 17.5 percent plunge in the previous month.
- USD/NOK trades 0.05 up at 9.4680, having touched a low of 9.3392 on Thursday, its lowest June 11.
- The pair rallied to a 1-week peak, breaking above 200-DMA earlier in the day.
- Immediate resistance is located at 9.5535 (21-DMA), close above could take it till 9.5750.
- On the downside, support is around 9.4347 (5-DMA), break below could take it till 9.3922.