- The Norwegian Krone declined, reversing most of its previous session gains, following downbeat retail sales.
- Norway's retail sales plunged 0.4 percent in June, after slumping 1.3 percent in May.
- USD/NOK trades 0.3 percent up at 8.7196, having touched a high of 8.7318 last week, its highest since June 19.
- The pair faces major resistance at 8.7294 (session's high and trendline joining 8.7594 and 8.7318)
- RSI is strong at 60.73 and MACD supports uptrend. Scope for further upside.
- Stochs are likely to rollover from overbought levels, a minor dip expected.
- Immediate resistance is around 8.7369 (June 17 High), any close above could take it till 8.7594 (June 18 High).
- On the downside, support is located at 8.6778 (5-DMA) and any violation below could take it till 8.6573 (7-EMA).
Recommendation: Good to buy on dips around 8.800, with stop loss at 8.6628 and target price of 8.7594.
