FxWirePro: Norwegian Krone rebounds from record low as oil prices stabilize
The Norwegian Krone rebounded from record lows as oil recovered on hopes that a price war by top producers Saudi Arabia and Russia will not be sustained. The recovery in the Norwegian currency was also supported by hopes…
The Norwegian Krone rebounded from record lows as oil recovered on hopes that a price war by top producers Saudi Arabia and Russia will not be sustained.
The recovery in the Norwegian currency was also supported by hopes for global stimulus measures to cushion the economic impact of the coronavirus outbreak
USD/NOK trades 1.1 percent lower at 9.4694, having touched an all-time high of 9.6056 the day before.
On Monday, the pair briefly rose above the 9.6000 handle, but failed to sustain gains.
Momentum indicators are bearish on hourly charts: RSI weak at 44 Stochs are biased lower and MACD supports downside
Immediate resistance is located at 9.6059, and close above could take it till 9.6155.
On the downside, support is around 9.4425 (38.2% retracement of 9.1788 and 9.6056), break below could take it till 9.3922 (50% retracement)
Recommendation: Good to sell on rallies around 9.5698, with stop loss at 9.6015 and target price of 9.4425.
