FxWirePro: USD/DKK slumps to over 1-year low, good to sell on rallies
The Danish Krone rallied to an over 1-year peak as the greenback eased after the yield on 10-year U.S. Treasuries went under 0.5 percent for the first time. The U.S. 10-year Treasury yields slid to fresh record lows and …
The Danish Krone rallied to an over 1-year peak as the greenback eased after the yield on 10-year U.S. Treasuries went under 0.5 percent for the first time.
The U.S. 10-year Treasury yields slid to fresh record lows and were set for their biggest one-day fall in more than a decade, as panic over the coronavirus outbreak drove investors into safe-haven bonds.
USD/DKK is trading 1.1 percent down at 6.5464, having hit low of 6.4994 earlier, its lowest since January 2019.
Momentum indicators are bearish - RSI weak at 20, Stochs are at oversold levels and MACD supports downside.
Immediate resistance is located at 6.6442 (61.8% retracement of 6.6748 and 6.6994), close above could take it till 6.6642.
On the downside, support is seen at 6.4965, and any break below will take it till 6.4923.
Recommendation: Good to sell on rallies around 6.6161, with stop loss of 6.6442 and target price of 6.4965.
