FxWirePro: USD/DKK hits 1-1/2 month peak, faces resistance at 55-EMA
Tuesday, September 22, 2020 10:46 AM UTC
- The Danish Krone plunged to a 1-1/2 month low following the release of downbeat economic data.
- The Danish consumer confidence index declined to -7.4 in September from -5.5 in August, its weakest reading since May, due to deterioration in expectations regarding households' financial situation amid the coronavirus pandemic.
- Moreover, a surge in the greenback further dented the bid tone around the Danish currency.
- The dollar index rallied after the Federal Reserve Chair Jerome Powell said that the central bank remains committed to use all the tools at its disposal to help the U.S. economy recover from the effects of the coronavirus pandemic.
- USD/DKK is trading 0.1 percent higher at 6.3302, having hit high of 6.3485 earlier, its highest since August 12.
- Immediate resistance is located at 6.3666 (55-EMA), close above could take it till 6.3930.
- On the downside, support is seen at 6.2980 and any break below will take it till 6.2794.