FxWirePro: USD/DKK extends rally above 21-EMA, near-term outlook bullish
Wednesday, April 1, 2020 9:53 AM UTC
- The Danish Krone slumped to a 1-week low after the country's central bank stated that Denmark's economy may face a contraction of as much as 10 percent this year as the coronavirus outbreak hits the Nordic economy.
- The Danish currency came under selling pressure after data showed Denmark's manufacturing PMI declined to 46.8 in March from a downwardly revised 48.4 in the previous month, indicating second consecutive contraction in factory activity and the steepest since June last year.
- 10-DMA is currently acting as major resistance, break above 6.8700 could see a trend reversal.
- USD/DKK is trading 0.9 percent up at 6.8294, having hit low of 6.6950 on Friday, its lowest since Mar. 17.
- Momentum indicators are bullish, likely to break above 6.8400.
- Immediate resistance is located at 6.8559 (10-DMA), close above could take it till 6.8860.
- On the downside, support is seen at 6.7569 (21-DMA), and any break below will take it till 6.7413 (200-DMA).