USDNOK Testing Key Support
USDNOK is attempting to breakout to the downside here. With the Dollar failing to find lift-off following the hawkish FOMC last week, and with crude prices turning higher again here, NOK is soaring against the greenback. The breakdown through the rising trend line has now seen the market trading down to test below big support at the 8.6301 level. With MACD and RSI both bearish here and with the retail market firmly long the pair, there is plenty of room for the current downturn to continue. Look for shorts on a break of the current support, targeting 8.5168 initially and 8.4140 thereafter.
Keep An Eye On
The big focus today will be on the March Norges bank meeting. The central bank is widely expected to raise rates, citing surging inflation, along with signalling further hikes to come this year. Provided the bank delivers on these expectations, the current dynamic should remain. The other main element here is the current rebound in oil prices. While oil prices remain supported, NOK should retain a firm bid against USD while a reversal lower in oil would likely curtail the current NOK move.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.