FxWirePro: Norwegian Krone hits fresh record low as dust settles on Norges Bank rate cut
The Norwegian Krone plunged to fresh record lows as global central bank's aggressive policy steps aimed at cushioning the economic impact from the coronavirus had only limited success in calming panicky investors. On Fri…
The Norwegian Krone plunged to fresh record lows as global central bank's aggressive policy steps aimed at cushioning the economic impact from the coronavirus had only limited success in calming panicky investors.
On Friday, the Norwegian currency strengthened after the Norges Bank announced a large and unscheduled interest rate cut to support the economy.
The Norges Bank lowered its benchmark interest rate by 50 bps to 1.0 percent, in an announcement, it's first cut-rate since March 2016.
USD/NOK trades 2.3 percent higher at 10.2290, having touched an all-time high of 10.3014 earlier.
Momentum indicators are bullish: RSI strong at 78, Stochs are at overbought levels and MACD supports upside.
Immediate resistance is located at 10.3203, and close above could take it till 10.3494.
On the downside, support is around 9.8722 (38.2% retracement of 9.1788 and 10.3014), break below could take it till 9.7398 (50% retracement)
Recommendation: Good to buy on dips around 10.1795, with stop loss at 10.1212 and target price of 10.3203,
