- The Danish Krone plunged to a 1-week low following the release of downbeat inflation figures.
- Denmark's annual inflation rate declined to 0.4 percent in July 2019 from 0.6 percent in the previous month, its lowest inflation since November 2016.
- USD/DKK is currently trading 0.3 percent up at 6.6794, having hit a high of 6.6864 earlier, its highest since August 5.
- The pair finds major support at 6.6470 (trendline joining 6.5507 and 6.6346)
- Technical indicators are bullish, with the RSI at 52.0 and Stochs supporting upside.
- Immediate resistance is located at 6.6919 (10-DMA), close above could take it till 6.7095 (July 24 High).
- On the downside, support is seen at 6.6470 (trendline), and any close below 6.6346 (August 6 Low) could see reversal in trend.
Recommendation: Good to buy on dips around 6.6571, with stop loss of 6.6450 and target price of 6.6919.
