- The Norwegian Krone eased, hovering towards a 2-1/2-week trough hit in the previous session as investors continued to digest downbeat inflation figures.
- Norway's annual inflation rate declined to 1.4 percent in December from 1.6 percent in the previous month, below market expectations of 1.5 percent.
- USD/NOK trades 0.2 percent higher at 8.8928, having touched a high of 8.9127 earlier, its highest since December 24.
- Momentum indicators are bullish: RSI point north, MACD supports upside and Stoch are biased higher.
- Immediate resistance is located at 8.9146 (21-DMA), and close above could take it till 8.9373.
- On the downside, support is around 8.8509 (5-EMA), break below could take it till 8.8307 (10-EMA).
Recommendation: Good to buy on dips around 8.8810, with stop loss at 8.8576 and target price of 8.9146.