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USD/NOK remains stable, Fed policymakers' caution underpins the dollar

  • The USD/NOK pair recorded a slight rebound in the session on Monday, settling at 10,693, with buyers taking measured steps.
  • With the Fed showing resistance against premature easing, the USD finds solid support.
  • Markets will look for further clues on the Fed's stance in Wednesday's FOMC Minutes.

The USD/NOK pair is trading with slight gains, and the Dollar remains firm against its peers. The Federal Reserve (Fed) continues to send cautious messages about future policy decisions, so traders await the publication of the minutes of the Federal Open Market Committee (FOMC), scheduled for Wednesday, to obtain more information on the stance of the entity.

The Fed's unified voice warning about easing, despite the softening of recent data, remains one of the pair's influential factors that is limiting the pair's decline. The views align with market bets of a 10% chance of a rate cut in June rising to 30% and 80% in July and September according to CME's FedWatch tool.

In terms of data, the economic calendar remained empty on Monday, and the week's data highlights include the FOMC minutes from the May meeting on Wednesday, S&P Global PMI readings for May on Thursday, and the of April durable goods on Friday.

USD/NOK technical analysis

On the daily chart, the RSI is in negative territory, with a slight increase to 43, indicating a slow recovery of the negative trend. At the same time, the moving average convergence divergence (MACD) reveals a flat trend with persistent red bars, suggesting that negative momentum continues to prevail among investors.

USD/NOK Daily Chart

From a broader perspective, USD/NOK is at a critical juncture, positioned below the 20-day and 200-day SMA, suggesting a negative outlook. Still, losses will be limited if the pair stays above the 100-day moving average at 10,652.

USD/NOK

Overview
Latest price today 10.6964
Today Daily change 0.0196
Today Daily change % 0.18
Today daily opening 10.6768
Trends
daily SMA20 10.8962
50 daily SMA 10,815
SMA100 daily 10.6468
SMA200 Journal 10.7108
Levels
Previous daily high 10.8451
Previous daily low 10.6708
Previous weekly high 10.9094
Previous weekly low 10.6045
Previous Monthly High 11.1373
Previous monthly low 10,518
Daily Fibonacci 38.2 10.7374
Fibonacci 61.8% daily 10.7785
Daily Pivot Point S1 10.6167
Daily Pivot Point S2 10.5567
Daily Pivot Point S3 10.4425
Daily Pivot Point R1 10,791
Daily Pivot Point R2 10.9052
Daily Pivot Point R3 10.9652

Source: Fx Street

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