- The Norwegian Krone tumbled to a near 1-month low following the release of downbeat manufacturing PMI.
- Norway's Manufacturing PMI declined to 50.4 in September from an upwardly revised 53.9 in August and missing market expectations of 53.5, as new orders fell sharply and output growth slowed significantly.
- USD/NOK trades 0.5 percent up at 9.1366, having touched a high of 9.1482 earlier, its highest since September 3.
- The pair broke above 9.1085 but finds next hurdle at 9.1500 level. Break above 9.1500 could see further gains.
- Momentum indicators are bullish - RSI strong at 65.98, MACD supports upside and Stochs are at overbought levels.
- Immediate resistance is located at 9.1580 and a close above could take it till 9.1648.
- On the downside, support is around 9.1200 (5H-DMA), break below could take it till 9.1051 (20H-EMA).
Recommendation: Good to buy on dips around 9.1056, with stop loss at 9.0790 and target price of 9.1580
