- The Norwegian Krone rallied to a 5-week high following Norway's Central Bank monetary policy decision
- The Norges Bank raised its benchmark interest rate by 25bps to 1.50 percent during its September meeting, the third increase this year, stating that underlying inflation is close to the inflation target
- However, policymakers noted that the policy rate projection indicates a slightly smaller rate hike than in the June's forecast amid weaker growth prospects and lower interest rates abroad.
- USD/NOK trades 0.4 percent down at 8.9025, having touched a low of 8.8752 earlier, its lowest since August 14.
- Momentum indicators are bearish - RSI weak at 44.31, MACD supports downside and Stochs are at oversold levels.
- Immediate resistance is around 8.9943 (21-DMA) and any violation above could take it till 9.0485 (August 28 High).
- On the downside, support is located at 8.8625 (August 12 Low) and break below could take it till 8.8490 (August 9 Low).
- The pair breached major support 55-EMA at 8.8803, close below could see a reversal in trend
Recommendation: Good to sell on rallies around 8.9526, with stop loss at 8.9706 and target price of 8.8490
