USDNOK Higher As Crude Oil Price Slumps

USDNOK jumps to two-week highs as the crude oil price is under severe selling pressure for one more day. A historic move yesterday from the front-month crude oil futures price that dropped close to $-40 ahead of today’s expiration send all commodities linked currencies lower. The pair hit earlier on the day as high as 10.6893, but after the release of disappointing figures from the Philly Fed Nonmanufacturing Index, the pair retreated.

The Philly Fed Nonmanufacturing Index hit fresh all-time lows in April. The regional activity index came down to -96.4 from -35.1 in March. The new orders index registered at -67.2; the March reading was at -16.4. The non-manufacturing full-time employment index dropped to -47.5 well below the March reading of -1.7. Also, the forward expectations disappointed as the six-month future activity index dropped to -45.8 from -36.9 in March.

The Sales of existing homes fell 8.5% in March, according to the National Association of Realtors’ seasonally adjusted index. The data refers to January and February contracts before the coronavirus outbreak hit the USA.

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USDNOK Support and Resistance

USDNOK trades 1.03% higher at 10.5515 as the correction from all-time highs stalled at 10.1650. USD attracts bids across the board today as fears for the second phase of USD liquidity problems in global markets rise. The technical picture remains bullish for the pair despite the recent pullback and an attempt to record highs looks possible as the crude oil price trades lower.  

On the upside, the first resistance stands at 10.6893 the daily top. A close above that level today might challenge 10.8134 the high from March 26. A credible break above 10.8134 might target 11.0633 the high from March 25. 

On the flip side, the immediate support for USDNOK will be met at 10.4057 the daily low. If the pair breaks below, the next support zone is at 10.2760 the low from yesterday’s trading session. Next level to watch on the downside is at More bids might emerge at 10.1352 the low from April 9.  

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