- The Norwegian Krone plunged, extending losses for the second straight session following worse-than-expected retail sales and household consumption data.
- Norway's retail sales decreased 0.8 percent in October after posting a 0.1 percent drop in the previous month and below a forecast of 0.2 percent rise, while retail trade fell by 0.3 percent year-on-year in October, after a 0.8 rise a month earlier.
- Separate data showed household consumption of goods declined by 1 percent in October, after a downwardly revised 0.1 percent rise in the previous month.
- USD/NOK trades 0.2 percent higher at 9.1800, having touched a high of 9.2127 last week, its highest since November 4.
- Momentum indicators are bullish: RSI strong at 56.16, Stoch are biased higher and MACD supports upside.
- Immediate resistance is located at 9.1994, and close above could take it till 9.2041.
- On the downside, support is around 9.1562 (7-EMA), break below could take it till 9.1435 (21-DMA).
Recommendation: Good to buy on dips around 9.1688, with stop loss at 9.1562 and target price of 9.1994.
