- The Danish Krone eased, hovering towards a record low hit in the previous session following unemployment figures
- Denmark's unemployment rate came in at 3.8 percent in August, unchanged from the prior two month's figure.
- The pair retraced from all-time high to close lower at 6.8240.85 on Friday's trade. The downside was limited at 5-DMA.
- USD/DKK is currently trading up at 6.8258, having hit a record high of 6.8476 on Friday.
- However, the upside in the pair appears limited as separate data showed Danish economy expanded by 0.9 percent on quarter in the three months to June, faster than preliminary estimates of 0.8 percent, and accelerating from an upwardly revised 0.3 percent growth in the previous period.
- While on annualized basis, Denmark's Gross Domestic Product expanded 2.50 percent in the second quarter.
- Momentum indicators are bullish - RSI strong at 61.88, MACD support upside and Stochs indicate a bullish crossover.
- Immediate resistance is located at 6.8380, close above could take it till 6.8500.
- On the downside, support is seen at 6.8051 (7-EMA), and any break below will take it till 6.7897.
Recommendation: Good to buy on dips around 6.8240, with stop loss of 6.8051 and target price of 6.8380.
