Forex Market: USD/NOK daily forecast

During yesterday’s trading session USD/NOK traded within the range of 5.9358-5.9503 and closed at 5.9466.

At 6:07 GMT today USD/NOK was gaining 0.1% for the day to trade at 5.9490. The pair touched a daily high at 5.9532 at 5:30 GMT, breaching the first resistance level of 5.9527.

Fundamental view

Norway

The Manufacturing Purchasing Managers Index (PMI) in Norway probably rose to 52.5 in April, from 51.9 in the previous month, according to the median analysts estimate.

The index is based on a monthly survey – questionnaire, which involves carefully selected companies, thereby giving a preliminary indication of the future developments in the private sector of the economy by tracking changes in production, new orders, stock levels, employment and prices in the manufacturing sector. PMI is the first economic indicator that provides accurate information on changing economic conditions before the publication of the official government statistics. The index is presented at levels between 1 and 100. Levels above 50 indicate positive growth , those below 50 indicate a contraction in activity.

Statistics Norway is due to release an official report at 7:00 GMT. A higher than expected increase would certainly heighten the appeal of the Norwegian krona.

United States

Employers in all sectors of economy in the United States, excluding the farming industry, probably added 210 000 new jobs in April, according to the median forecast by experts, after a job gain of 192 000 in the preceding month. Creation of jobs is considered of utmost importance for consumer spending, while the latter is a major driving force behind economic growth. In case of a larger than expected gain in jobs, the US currency would receive a boost.

In addition, the rate of unemployment in the United States probably decreased to 6.6% last month from 6.7% in March. In case the rate meets expectations or even drops further, this would have a bullish effect on the greenback.

Both reports are due to be released at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case USD/NOK manages to breach the first resistance level at 5.9527, it will probably continue up to test 5.9588. In case the second key resistance is broken, the pair will probably attempt to advance to 5.9672.

If USD/NOK manages to breach the first key support at 5.9382, it will probably continue to slide and test 5.9297. With this second key support broken, the movement to the downside will probably continue to 5.9237.