A light economic calendar during the European trading hours kept most of the major currencies in tight range, with the market keeping its eyes on a possible US Government shutdown. The EUR/USD and GBP/USD were virtually unchanged during the European morning from opening levels. The greenback recovered all of its overnight losses against the CHF, but didn’t manage to maintain its temporary momentum and returned to the same levels where it opened the session. The uncertainty surrounding the USD and EUR has encouraged investors to move into safe haven investments with the dollar losing ground for a 3rd consecutive day against the CHF. On the other hand, the NOK recorded the biggest losses against the USD after retail sales (excluding autos) rose only 0.2% mom in August, missing estimates of a 0.9% rise.
The USD/NOK has been moving in a short term uptrend and during the last couple of trading hours managed to overcome the hurdle of 6.0088 (current support). As the price emerge above that level I would expect the longs to drive the action to the 6.0314 (R1) barrier. A clear upward break from there should trigger extensions toward new short term highs. The positive attitude of the pair is also supported by all our technical studies. The 20-period moving average lies above the 200-period moving average, while the rate grabbed the upper Bollinger band and probably will start riding it. With the MACD and the RSI oscillators finding support at the blue upward sloping lines, the odds for the continuations of the uptrend are increasing. However, on the daily chart the pair is moving in a downward sloping channel, and I believe that the price will find a ceiling near the 6.0900 (R3) level.
Support levels are identified at 6.0088 (S1), followed by 5.9831 (S2) and 5.9647 (S3).
Resistance is at 6.0314 (R1), followed by 6.0554 (R2) and 6.0900 (R3). The latter one is found from the daily chart.
USD/NOK" title="USD/NOK" src="https://d1-invdn-com.akamaized.net/content/pic8a8562addfc1463089deecce6303b753.PNG" height="810" width="1729">
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