FxWirePro: USD/DKK at 1-month peak, jump till 6.7700 likely
The Danish Krone plunged to a 1-month low despite better than expected preliminary GDP growth rate figures. The preliminary estimate showed that Denmark's economy expanded by 0.8 percent on quarter in the three months to…
The Danish Krone plunged to a 1-month low despite better than expected preliminary GDP growth rate figures.
The preliminary estimate showed that Denmark's economy expanded by 0.8 percent on quarter in the three months to June, accelerating from an upwardly revised 0.2 percent growth in the previous period.
USD/DKK is currently trading 0.1 percent up at 6.7524, having hit a high of 6.7576 earlier, its highest since August 1.
On Thursday, the pair breach major resistance at 6.7460 and have extended gains from there on..
Technical indicators support uptrend, with RSI strong at 63.01 and Stochs biased higher.
Immediate resistance is located at 6.7707 (August 1 High), close above could take it till 6.7800 level. Minor trend reversal only above 6.7800.
On the downside, support is seen at 6.7290 (August 1 Low), and a break below will take it till 6.7215 (5-DMA) / 6.7070 (21-EMA).
Recommendation: Good to buy on dips around 6.7430, with stop loss of 6.7290 and target price of 6.7707.
