FxWirePro: Norwegian Krone rebounds from record lows as Norges Bank cuts rates to 0.25 pct
The Norwegian Krone retreated from record highs following Norway's central bank interest rate decision. The Norges Bank cut its benchmark interest rate by 75 bps to a record low of 0.25 percent during an emergency meetin…
The Norwegian Krone retreated from record highs following Norway's central bank interest rate decision.
The Norges Bank cut its benchmark interest rate by 75 bps to a record low of 0.25 percent during an emergency meeting today, it followed another extraordinary 50bps slash a week earlier which was the first cut in borrowing costs since 2016.
On Thursday, the pair rallied to new highs above the 12.000 level before closing 0.3 percent down.
USD/NOK trades 3.1 percent lower at 10.9009, having touched an all-time high of 12.1224 the day before.
Momentum indicators are turning bearish on hourly charts: RSI weak at 35, Stochs are at oversold levels and MACD supports downside.
Immediate resistance is located at 11.5102, and close above could take it till 11.7723.
On the downside, support is around 10.6510 (5-DMA) / 10.6370 (50% Fib), break below could take it till 10.5617 (7-EMA).
Recommendation: Good to sell on rallies around 11.2285, with stop loss at 11.2736 and target price of 10.6510.
