- The Norwegian Krone rebounded from all-time lows, following the release of better-than-expected inflation figures.
- Norway's annual inflation rate increased to 1.8 percent in January from 1.4 percent in the previous month, surpassing expectations of 1.2 percent.
- While, core inflation stood at 2.9 percent year-on-year, up from 1.8 percent in December.
- USD/NOK trades 0.5 percent lower at 9.2492, having touched a record high of 9.3057 earlier.
- Momentum indicators are turning bearish: RSI weak at 42.39, Stochs are biased lower and MACD supports downside.
- Investors now await Norway central bank governor Oeystein Olsen's speech this week, in which he is expected to give a broad outline of the country's economic prospects.
- Immediate resistance is located at 9.3080, and close above could take it till 9.3132.
- On the downside, support is around 9.2144 (7-EMA), break below could take it till 9.1976 (10-DMA).
Recommendation: Good to sell on rallies around 9.2890, with stop loss at 9.3080 and target price of 9.2144.
