- The Norwegian Krone rallied to a 1-1/2-week peak against the euro, breaching major support at 20-EMA despite downbeat current account figures.
- Norway's current account surplus plunged to NOK 30.59 billion in the three months to June from NOK 59.27 billion in the same period the prior year, recording its smallest current account surplus since the third quarter 2016.
- EUR/NOK trades up at 9.9891, having touched a low of 9.9535 earlier, its lowest since Aug. 23.
- Overall trend is still bullish, with RSI strong at 56.38, and Stochs indicating a bullish crossover
- Immediate resistance is around 10.0363 (Aug. 26 High) and any violation above could take it till 10.0623 (trendline joining 10.0972 and 10.0694) / 10.0972.
- Any violation above 10.0972 could see a reversal in trend.
- On the downside, major support is located at 9.9406 (August 20 Low) and any break below could take it till 9.9060 (August 2 Low).
Recommendation: Good to buy on dips around 9.9786, with stop loss at 9.9552 and target price of 10.0363.
