FxWirePro: USD/NOK near 1-month peak on Norway's soft manufacturing PMI, good to buy on dips
The Norwegian Krone tumbled to a near 1-month low following the release of downbeat manufacturing PMI. Norway's Manufacturing PMI declined to 50.4 in September from an upwardly revised 53.9 in August and missing market e…
The Norwegian Krone tumbled to a near 1-month low following the release of downbeat manufacturing PMI.
Norway's Manufacturing PMI declined to 50.4 in September from an upwardly revised 53.9 in August and missing market expectations of 53.5, as new orders fell sharply and output growth slowed significantly.
USD/NOK trades 0.5 percent up at 9.1366, having touched a high of 9.1482 earlier, its highest since September 3.
The pair broke above 9.1085 but finds next hurdle at 9.1500 level. Break above 9.1500 could see further gains.
Momentum indicators are bullish - RSI strong at 65.98, MACD supports upside and Stochs are at overbought levels.
Immediate resistance is located at 9.1580 and a close above could take it till 9.1648.
On the downside, support is around 9.1200 (5H-DMA), break below could take it till 9.1051 (20H-EMA).
Recommendation: Good to buy on dips around 9.1056, with stop loss at 9.0790 and target price of 9.1580
