FxWirePro: USD/DKK extends losses below 6.9000, good to sell on rallies
The Danish Krone rallied, extending gains for the fourth straight session, as the greenback declined against a basket of currencies. The dollar index eased as a deal to backstop the U.S. economy with a huge fiscal stimul…
The Danish Krone rallied, extending gains for the fourth straight session, as the greenback declined against a basket of currencies.
The dollar index eased as a deal to backstop the U.S. economy with a huge fiscal stimulus package promised to further ease some of the pandemic-driven demand for liquid cash.
On Monday, the pair rallied to an over 3-year high above the 7.000 handle but retraced to close lower at 6.8992.
USD/DKK is trading 0.5 percent down at 6.8860, having hit high of 7.0236 on Monday, its highest since April 2017.
Momentum indicators are bearish on hourly charts - RSI weak at 38, MACD supports downside and Stochs are at oversold levels.
Immediate resistance is located at 6.9407 (5-DMA), close above could take it till 6.9642.
On the downside, support is seen at 6.8630, and any break below will take it till 6.8460.
Recommendation: Good to sell on rallies around 6.9180, with stop loss of 6.9297 and target price of 6.8770.
