FxWirePro: USD/DKK extends rally above 21-EMA, near-term outlook bullish
The Danish Krone slumped to a 1-week low after the country's central bank stated that Denmark's economy may face a contraction of as much as 10 percent this year as the coronavirus outbreak hits the Nordic economy. The D…
The Danish Krone slumped to a 1-week low after the country's central bank stated that Denmark's economy may face a contraction of as much as 10 percent this year as the coronavirus outbreak hits the Nordic economy.
The Danish currency came under selling pressure after data showed Denmark's manufacturing PMI declined to 46.8 in March from a downwardly revised 48.4 in the previous month, indicating second consecutive contraction in factory activity and the steepest since June last year.
10-DMA is currently acting as major resistance, break above 6.8700 could see a trend reversal.
USD/DKK is trading 0.9 percent up at 6.8294, having hit low of 6.6950 on Friday, its lowest since Mar. 17.
Momentum indicators are bullish, likely to break above 6.8400.
Immediate resistance is located at 6.8559 (10-DMA), close above could take it till 6.8860.
On the downside, support is seen at 6.7569 (21-DMA), and any break below will take it till 6.7413 (200-DMA).
