- The Danish Krone declined, halting a 4-day rally following the release of soft industrial production figures.
- Denmark's industrial production increased 3.6 percent year-on-year in August, following an upwardly revised 8.5 percent gain in the previous month, while manufacturing output rose 2.7 percent, after an upwardly revised 11.1 percent rise in July.
- However, on a monthly basis, industrial production decreased 2.20 percent in August, after recording an upwardly revised 3.6 gain in July.
- Last week, the pair slumped to a 1-week low but found strong resistance at 21-DMA.
- USD/DKK is currently trading 0.1 percent up at 6.8111, having hit low of 6.7876 on Thursday, its lowest since September 25.
- Momentum indicators are bullish on hourly charts - RSI strong at 60.14, MACD support upside and Stochs are biased higher.
- 21-DMA continues to act as strong support level.
- Immediate resistance is located at 6.8210 (5-DMA), close above could take it till 6.8476.
- On the downside, support is seen at 6.7877 (21-DMA), and any break below will take it till 6.7704.
Recommendation: Good to buy on dips around 6.7983, with stop loss of 6.7877 and target price of 6.8210
