- The Norwegian Krone consolidates between a narrow range despite upbeat Norway consumer confidence and Trade balance figures.
- Norway’s consumer confidence rose 5.2 points in Q1 versus revised 1.8 in Q4, while Trade balance expanded to 25 billion NOK in January from 23.28 billion in December.
- USD/NOK currently trades flat at 8.3967, after rising to a 3-week high of 8.4203 in the previous session.
- Technical indicators support upside in the pair - RSI strong at 52.49, Stochs are biased higher, MACD supports uptrend.
- Immediate resistance is around 8.4219 (50.0 % retracement of 8.6715 and 8.1725) and any break above will take it till 8.4552 (trendline joining 8.3369 and 8.3950)
- On the lower side, 8.3614 (5-DMA) is acting as next immediate support and any break below 8.3447 (200 DMA) could see reversal in trend.
Recommendation: Good to go long on close above 8.4000 with stop loss at 8.3780 and target price of 8.4219/ 8.4670.
