Forex Market: USD/NOK daily forecast

During yesterday’s trading session USD/NOK traded within the range of 5.8960-5.9353 and closed at 5.9112.

At 6:50 GMT today USD/NOK was losing 0.19% for the day to trade at 5.8976. The pair touched a daily low at 5.8971 at 6:47 GMT.

Fundamental view

United States

The initial jobless claims in the US probably fell to 325 000 in the week ended May 3rd, from 344 000 a week ago, according to the median estimate by experts. The indicator measures the number of applications for unemployment benefits that are recorded each week in a report prepared by the Bureau of Labor Statistics in the United States. Initial application or (Initial Claim) means a completed document from an unemployed person before the local government, which is considered a claim for compensation or the possibility of compensation. The completion of the initial claim marks the beginning of a period in which the applicant receives unemployment benefits. The survey covers the number of applications registered in the previous week and is an important indicator concerning the health of the US labor market.

The data is due to be released at 12:30 GMT. In case initial jobless claims drop more than expected, this will heighten the appeal of the greenback.

Norway

At 8:00 GMT the Norges Bank will announce its decision on interest rates. Analysts expect that the central bank will keep the benchmark rate unchanged at 1.50% at its policy meeting. The key policy rate has been maintained at this level since central bank’s meeting on March 14th 2012, when a 0.25% cut was introduced.

Technical view

According to Binary Tribune’s daily analysis, in case USD/NOK manages to breach the first resistance level at 5.9323, it will probably continue up to test 5.9535. In case the second key resistance is broken, the pair will probably attempt to advance to 5.9716.

If USD/NOK manages to breach the first key support at 5.8931, it will probably continue to slide and test 5.8749. With this second key support broken, the movement to the downside will probably continue to 5.8537.