FxWirePro: USD/NOK slumps to 1-week low, finds support at 200-DMA
The Norwegian Krone surged to a 1-week peak as oil prices rallied after a decline in U.S. crude stocks suggested demand rise. Crude oil prices rallied to a 1-week peak after an industry report showed crude stockpiles in …
The Norwegian Krone surged to a 1-week peak as oil prices rallied after a decline in U.S. crude stocks suggested demand rise.
Crude oil prices rallied to a 1-week peak after an industry report showed crude stockpiles in the United States fell more than expected, indicating demand is improving even as the coronavirus outbreak spreads around the world.
Data released by the American Petroleum Institute (API) late on Tuesday showed, U.S. crude and gasoline stocks fell more than expected last week, while distillate inventories rose.
Crude inventories declined by 8.2 million barrels to 537 million barrels, against forecasts for a draw of 710,000 barrels.
Moreover, the Norwegian currency was also supported by data showing Norway's DNB Manufacturing PMI increased to 48.9 in June of 2020 from a downwardly revised 44.9 in the previous month.
USD/NOK trades 0.3 percent lower at 9.5847, having touched a low of 9.5232 earlier, its lowest June 24.
On Tuesday, the pair rallied to a 2-week low at 9.7688 but found strong resistance at 55-EMA to close 0.6 perent lower at 9.6178.
Major resistance 55-EMA at 9.7893
Major support 200-DMA at 9.5234.
Immediate resistance is located at 9.6621 (5-DMA), close above could take it till 9.7185.
On the downside, support is around 9.4881, break below could take it till 9.4420.
