FxWirePro: USD/DKK hits 1-1/2 week trough, dip till 6.2690 likely
Monday, August 17, 2020 8:22 AM UTC
- The Danish Krone rallied to an over 1-week peak as the greenback eased against a basket of currencies.
- The dollar index declined as caution crept in ahead of the release of U.S. Federal Reserve minutes later this week.
- Markets speculate the Fed will adopt an average inflation target, which would seek to push inflation above 2 percent for some time to make up for the years it has run below it.
- USD/DKK is trading 0.05 percent lower at 6.2890, having hit low of 6.2749 earlier, its lowest since August 7.
- Techincal indicators point bearish momentum.
- Immediate resistance is located at 6.3116 (7-EMA), close above could take it till 6.3359.
- On the downside, support is seen at 6.2690 and any break below will take it till 6.2509.