- The Norwegian Krone edged higher, hovering away from a 2-1/2 year low following the release of upbeat manufacturing production figures.
- Norway's manufacturing production rose at an annualized rate of 3.0 percent in June from the previous month's reading of 2.8 percent.
- However, the upside in the Norwegian currency appears limited as industrial production figures plunged 8.6 percent year-on-year in June, following a 2.5 percent contraction in the previous month.
- USD/NOK trades 0.1 percent down at 8.9344, having touched a high of 8.9865 on Wednesday, its highest since Jan 6, 2016.
- Overall trend is bullish, with RSI strong at 71.10 and MACD supporting uptrend.
- Stochs indicate a bearish crossover and are likely to rollover from overbought levels, a minor dip expected.
- Major resistance is around 8.9936 and any violation above could test the 9.000 level.
- Minor trend reversal only above 8.9950.
- On the downside, support is located at 8.9139 (5-DMA) and any break below could take it till 8.8731 (7-EMA).
Recommendation: Good to buy on dips around 8.9200, with stop loss at 8.8900 and target price of 8.9936.
