- The Norwegian Krone nudged higher retreating from a record low recorded last week as the greenback weakened on growing expectations that the Federal Reserve will cut interest rates.
- Investors raised their bets of an interest rate cut by the U.S. Federal Reserve at its policy review this month to shield the economy from the rapid spread of the coronavirus.
- The Norwegian currency also drew strength from upbeat manufacturing PMI which helped it to climb to 1-week peak.
- Norway's DNB Manufacturing PMI rose to 52.2 in February from an upwardly revised 51.1 in the previous month, while new orders increased much faster and employment returned to growth.
- USD/NOK trades 0.1 percent lower at 9.3742, having touched an all-time high of 9.4953 on Friday.
- Momentum indicators are bearish: RSI weak at 46 and MACD supports downside.
- Immediate resistance is located at 9.4544, and close above could take it till 9.4653.
- On the downside, support is around 9.3566 (7-EMA), break below could take it till 9.3321 (10-DMA).
Recommendation: Good to sell on rallies around 9.4230, with stop loss at 9.4544 and target price of 9.3566
