FxWirePro: USD/NOK gains on Norway's soft economic data, good to buy on dips
The Norwegian Krone eased, hovering towards a 1-1/2 week trough hit in the previous session following soft industrial production and manufacturing prod. figures. Norway's industrial production declined 0.9 percent year-o…
The Norwegian Krone eased, hovering towards a 1-1/2 week trough hit in the previous session following soft industrial production and manufacturing prod. figures.
Norway's industrial production declined 0.9 percent year-on-year in November, following a 5.7 percent contraction in the previous month.
While separate data showed manufacturing production eased 0.4 percent in November after remaining flat in the previous month.
USD/NOK trades 0.2 percent higher at 8.8646, having touched a high of 8.8766 on Tuesday, its highest since December 27.
Momentum indicators are bullish: RSI point north and Stoch are biased higher.
Immediate resistance is located at 8.8930, and close above could take it till 8.9216 (20-EMA).
On the downside, support is around 8.8088 (5-DMA), break below could take it till 8.7740.
Recommendation: Good to buy on dips around 8.8490, with stop loss at 8.8088 and target price of 8.8930.
