FxWirePro: USD/DKK at 5-week peak, good to buy on dips

The Danish Krone slumped to a 5-week low after the release of lower-than-expected Denmark consumer confidence data.

Data released earlier showed Denmark's consumer confidence came in at 2.9 in July, below expectation of 5.5 and previous month's reading of 5.8.

The pair is trading 0.2 percent up at 6.6741, having hit a high of 0.6754 earlier, its highest since June 19.

Stochs and RSI are higher, with the RSI at 59.10 levels showing strength in the current uptrend.

The overall trend is still bullish, however, the risk-reward ratio is not favourable. A minor decline can be used as a buying opportunity.

Immediate resistance is located at 6.6781 (June 18 High), close above could take it till 6.7173 (May 30 High).

On the downside, support is seen at 6.6496 (5-DMA), break below could take it till 6.6404 (61.8% retracement of 6.6179 and 6.6754).

Recommendation: Good to buy on dip around 6.6530, with stop loss around 6.6400 for target price of 6.6900.