USDNOK Technical Analysis
Norwegian Krone started the week on positive foot helped by higher oil prices after the drone attack on Saudi Arabia oil facilities; analysts estimate that will reduce 5% world’s oil supply. USDNOK trading 0.25% lower at 8.9560 having hit the daily low at 8.9199 facing ahead in the week two important rate decisions from Fed with expectations for 25 basis points cut and from Norges Bank where analysts expect to keep the interest rate unchanged.
On the technical side USDNOK continues the correction from 18-year highs at 9.16 since early September. Traders focus has turned to lower levels today after the spike in crude oil prices. Immediate support for the pair stands at 8.9199 daily low while more bids will emerge at 8.8559 the 200-day moving average. A break below might accelerate the downward move for a test of 8.7641 and the 100-day moving average. On the upside, first resistance stands at 8.9782 the daily high and then at 9.03 the high from September 5th before an attempt to fresh yearly highs. USDNOK traders will be very busy this week following the developments in Midle East and the oil price, while awaiting the FOMC and Norges Bank decision on interest rates.