USD/NOK to extend its rally towards key resistance at 9.0557/0864 – Credit Suisse

USD/NOK has recently broken above its 200-day average and subsequently confirmed a base with the closing above 8.7305. Economists at Credit Suisse look for further strength, with the next key resistance seen at 9.0557/0864.

USD/NOK has completed a base and broken above its 200-day average

“There is now growing evidence that commodity currencies may be basing out, in line with the broader USD.” 

“USD/NOK has broken decisively for the 200-day average at 8.6409 and recently closed above 8.7305. This should complete a major ‘head and shoulders’ base to confirm a broader trend change.” 

“Next key resistances are seen at 8.8824, before 9.0557/0864. The ‘measured base objective’ projects a move even beyond here to 9.3025/3181, which is achievable if the broader USD confirms its ‘double bottom’.”