FxWirePro: USD/NOK hovers towards 2-1/2 week peak, good to buy on dips
The Norwegian Krone eased, hovering towards a 2-1/2-week trough hit in the previous session as investors continued to digest downbeat inflation figures. Norway's annual inflation rate declined to 1.4 percent in December …
The Norwegian Krone eased, hovering towards a 2-1/2-week trough hit in the previous session as investors continued to digest downbeat inflation figures.
Norway's annual inflation rate declined to 1.4 percent in December from 1.6 percent in the previous month, below market expectations of 1.5 percent.
USD/NOK trades 0.2 percent higher at 8.8928, having touched a high of 8.9127 earlier, its highest since December 24.
Momentum indicators are bullish: RSI point north, MACD supports upside and Stoch are biased higher.
Immediate resistance is located at 8.9146 (21-DMA), and close above could take it till 8.9373.
On the downside, support is around 8.8509 (5-EMA), break below could take it till 8.8307 (10-EMA).
Recommendation: Good to buy on dips around 8.8810, with stop loss at 8.8576 and target price of 8.9146.
