- The Norwegian Krone slumped to a record trough following the release of downbeat household consumption figures.
- Norway's household consumption of goods declined 1.8 percent month-over-month in July, following an upwardly revised 1.4 percent rise in the previous month
- However, the downside in the Norwegian currency appears limited as retail sales increased 0.8 percent in July over the previous month.
- USD/NOK trades up at 9.0884, having touched an all-time high of 9.1198 earlier.
- The overall trend is slightly bullish, with RSI strong at 70.15 and MACD supports uptrend.
- Stochs indicate a bearish crossover and are likely to rollover from overbought levels, a minor dip expected.
- Immediate resistance is around 9.1300 and any violation above could see a reversal in trend.
- On the downside, support is located at 9.0175 (7-EMA) and any break below could test 8.9572 (21-DMA).
Recommendation: Good to sell on rallies around 9.1050, with stop loss at 9.1200 and target price of 9.0175.
