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FxWirePro: USD/DKK at 2-week peak following Denmark's downbeat industrial production, good to buy on dips

  • The Danish Krone eased, tumbling to a fresh 2-week low following downbeat industrial production data.
  • Denmark's industrial production plunged 5.9 percent year-on-year in November, following an upwardly revised 1.3 percent gain in the previous month, recording its first decline since June. While on a monthly basis it decreased 5.30 percent in November over the previous month.
  • However, better than expected inflation figures limited the downside in the Danish currency.
  • USD/DKK is currenty trading 0.1 percent up at 6.7355, having hit high of 6.7378, its highest since Dec. 26.
  • Momentum indicators are bullish - RSI strong at 54.24, Stochs are biased higher and MACD supports upside.
  • Immediate resistance is located at 6.7415, close above could take it till 6.7505.
  • On the downside, support is seen at 6.7138, and any break below will take it till 6.7030 (200-DMA).

Recommendation: Good to buy on dips around 6.7298, with stop loss of 6.7138, and target price of 6.7415.

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