- The Danish Krone surged, extending gains for the fifth consecutive session, as the greenback declined to a 1-week low.
- On Wednesday, the U.S. Senate approved a $2 trillion emergency package to offset the economic impact of the coronavirus pandemic.
- However, the dollar index slumped as a flight to cash offset growing hopes for a massive U.S. economic stimulus to stem the coronavirus outbreak’s economic toll.
- The Danish currency was also supported by better-than-expected retail sales figures.
- Denmark's retail Sales increased 2.90 percent in February from a downwardly revised 0.4 percent in January, while on an annualized basis, it increased by 5.7 percent in February, following a downwardly revised 2.2 percent rise in the previous month.
- USD/DKK is trading 0.6 percent down at 6.8250, having hit high of 7.0236 on Monday, its highest since April 2017.
- Momentum indicators are bearish on hourly charts - RSI weak at 29, MACD supports downside and Stochs are at oversold levels.
- Immediate resistance is located at 6.8818 (7-EMA), close above could take it till 6.9015 (38.2 Fib).
- On the downside, support is seen at 6.8151 (21-EMA), and any break below will take it till 6.8064.
Recommendation: Good to sell on rallies around 6.8603, with stop loss of 6.8715 and target price of 6.8151.
