- The Norwegian Krone tumbled to a 1-week low as the dust settled over Norway's Central Bank monetary policy decision.
- On Thursday, the Norges Bank raised its benchmark interest rate by 25bps to 1.50 percent during its September meeting and noted that the economy was strong, with inflation near the bank’s set inflation targets
- The Norwegian currency rallied to an over 1-month high following Norway's Central Bank rate hike but reversed trend after breaching major support 55-EMA at 8.8803
- USD/NOK trades 0.2 percent up at 8.9995, having touched a low of 8.8752 the day before, its lowest since August 14.
- Momentum indicators are bullish - RSI strong at 54.78 and Stochs have rolled over from oversold levels.
- The pair broke minor resistance at 8.9959 (21-DMA) and is trading slightly above the level.
- Next, immediate resistance is located at 9.0160 (August 19 High) and close above could take it till 9.0485 (August 28 High).
- On the downside, support is around 8.9549 (5-DMA), break below could take it till 8.9365 (September 11 Low).
- Any break below 8.9118 could see reversal in tend.
Recommendation: Good to buy on dips around 8.9667, with stop loss at 8.9549 and target price of 9.0160