- The Norwegian crown weakened following the release of weaker-than-expected inflation figures.
- Norway’s consumer price index rose at an annualized rate of 2.8 percent, against estimates and previous reading of 3 percent.
- USD/NOK is current trading at 8.3762, up 0.4 pct on the day, after rising to a 2-week high of 8.3724.
- The pair broke above 200 DMA and is currently trading above this level. A close above would confirm further bullishness.
- Technical indicators are biased higher - RSI points north, MACD shows a bullish crossover on signal line.
- Immediate resistance is around 8.4112 (55-EMA) and any break above will take it till 8.4791 (61.8 % retracement of 8.6707 and 8.1693)
- On the lower side, 8.2791(10-DMA) is acting as next immediate support and any break below targets 8.1753 (Feb 2 Low)
Recommendation: Good to go long on close above 200 DMA with a stop loss at 8.3200 and target price of 8.4112/ 8.4791.
