FxWirePro: USD/NOK breaks below 55-EMA, finds support at 9.1804
The Norwegian Krone rallied to a 1-week peak following a decline in the greenback against a basket of currencies. The dollar index fell to an over 1-month low after U.S. President Donald Trump boosted hopes for a large f…
The Norwegian Krone rallied to a 1-week peak following a decline in the greenback against a basket of currencies.
The dollar index fell to an over 1-month low after U.S. President Donald Trump boosted hopes for a large fiscal stimulus package, prompting a wave of market optimism that bolstered riskier currencies.
However, a decline in the oil prices limited the Norwegian currency's upside.
Crude oil prices eased after a surprise build-up in U.S. crude stockpiles stoked concerns about a global supply glut, while a spike in global COVID-19 cases fuelled fears of slower recovery in fuel demand.
Data from industry group the American Petroleum Institute showed crude inventories rose by 584,000 barrels in the week to Oct. 16 to about 490.6 million barrels.
Worldwide COVID-19 cases crossed 40 million on Tuesday, with some parts of Europe imposing renewed lockdown measures.
International benchmark Brent crude was trading 0.8 percent down at $42.44 per barrel by 1142 GMT, having hit a low of $42.21 on Tuesday, its lowest since October 15. U.S. West Texas Intermediate was trading 0.4 percent lower at $40.96 a barrel, after rising as high as $41.87 on Tuesday, its highest since September 2.
USD/NOK trades 0.6 percent lower at 9.2174, having touched a low of 9.1882 earlier, its lowest since October 14.
Immediate resistance is located at 9.3203 (21-DMA), close above could take it till 9.3401.
On the downside, support is around 9.1737, break below could take it till 9.1309.
