FxWirePro: USD/DKK rebounds from 1-week low, finds support at 21-EMA
Wednesday, September 30, 2020 10:57 AM UTC
- The Danish Krone eased, halting a 2 day winning streak following the release of downbeat economic growth data.
- The Danish economy shrank by 6.8 percent on quarter in the three months to June, the most since the series began in 1991, compared to a downwardly revised 1.6 percent fall in the previous period. The country's gross domestic product contracted 7.70 percent in the second quarter of 2020 over the same quarter of the previous year.
- Moreover, strength in the greenback across the board further dented the bid tone around the Danish currency.
- The greenback against a basket of currencies traded 0.2 percent up at 94.04, having touched a low of 94.03 earlier, its lowest since September 22.
- USD/DKK is trading 0.3 percent higher at 6.3578, having hit low of 6.3347 earlier, its lowest since September 22.
- The pair fell to an over 1-week low earlier in the session, but found strong support at 21-EMA.
- Immediate resistance is located at 6.3844, close above could take it till 6.4020.
- On the downside, support is seen at 6.3289 (21-EMA), and any break below will take it till 6.3127 (21-DMA).