Forex Market: USD/NOK daily outlook

During yesterday’s trading session USD/NOK traded within the range of 5.9496-5.9880 and closed at 5.9735.

At 7:04 GMT today USD/NOK was gaining 0.22% for the day to trade at 5.9835. The pair touched a daily high at 5.9844 at 7:03 GMT.

Fundamental view

The number of people in the United States, who filed for unemployment assistance for the first time during the week ended on March 28th, probably increased to 317 000 from 311 000 in the prior week. In case the number of initial jobless claims increases more than projected, this would have a bearish effect on the greenback. The Department of Labor is to release the weekly report at 13:30 GMT.

The deficit on US trade balance probably narrowed to 38.500 billion USD during February from a deficit of 39.095 billion USD, registered in January. The trade balance, as an indicator, measures the difference in value between countrys exported and imported goods and services during the reported period. It reflects the net export of goods and services, or one of the components to form countrys Gross Domestic Product. In case the trade balance deficit shrinks more than expected, this would provide support to US dollar. The Bureau of Economic Analysis will release the official numbers at 13:30 GMT.

Activity in United States sector of services probably expanded during March, with the corresponding non-manufacturing PMI coming in at a reading of 53.5, according to expectations, from 51.6 in February. This is a compound index, based on the values of four equally-weighted components, that comprise it. These sub-indexes reflect seasonally adjusted new orders, seasonally adjusted employment, seasonally adjusted business activity and shipments. Readings above the key level of 50.0 are indicative of expanding activity. In case market expectations are exceeded, US dollar would be boosted.

Technical view

According to Binary Tribune’s daily analysis, in case USD/NOK manages to breach the first resistance level at 5.9911, it will probably continue up to test 6.0088. In case the second key resistance is broken, the pair will probably attempt to advance to 6.0295.

If USD/NOK manages to breach the first key support at 5.9526, it will probably continue to slide and test 5.9320. With this second key support broken, the movement to the downside will probably continue to 5.9143.