- The Norwegian Krone declined after the release of Norway's worse-than-expected unemployment rate.
- Data released earlier showed Norway's unemployment rate rose to 3.4 percent in May from previous month's reading of 3.3 percent and above a forecast of 3.2 percent.
- USD/NOK trades 0.1 percent up at 8.6474, having touched a high of 8.6960 in the prior session, its highest since June 20.
- On Wednesday, the pair failed to sustain above the 8.6755 level and declined slightly below 8.6297 (38.2% retracement of 8.5226 and 8.6960),
- RSI is still strong at 55.86, MACD supports uptrend.
- Immediate resistance is around 8.6960 (July 24 High), close above could take it near 8.7594 (June 18 High).
- On the downside, support is located at 8.6123 (55-EMA) and any violation below could take it till 8.5759 (200-DMA).
Recommendation: Good to buy around 8.6320, with stop loss at 8.6123 and target price of 8.6960.
