Intraday Comment : September 06, 2013

The NOK moved higher against 6 of G10 currencies after the release of production in manufacturing sector for July that came better than expected at 0.1% mom, beating expectations of a decline reading of -1.7% mom. Additionally, industrial production for July jumped 3.0% mom from previous reading of 0.7% mom, with the yoy to have risen 2.8% a turnaround from a revised -5.4%.

USD/NOK fell sharply during the last hour’s trading activity and at the time of writing is finding support at the 6.0888 (S1) level. Technically, the pair is still considered to move in an uptrend since it is trading above the blue trend-line which coincides with the 200-hour moving average. However, if the sellers continue their momentum, bearish extensions might be triggered towards the 6.0551 (S2) and 6.0378 (S3) support levels respectively. Meanwhile, we may want to refrain from using MACD’s signals since it is currently lying at its equilibrium zero line.

Support: Support is found at the 6.0888 (S1) level, followed by 6.0551(S2) and 6.0378(S3) respectively.

Resistance: The only resistance level identified on the 1-hour chart is at 6.1305 (R1), followed by the 6.1564 (R2) and 6.1903 (R3) levels respectively.

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