FxWirePro: USD/DKK extends losses, faces strong resistance at 21-EMA
Friday, November 13, 2020 8:48 AM UTC
- The Danish Krone rose, extending previous session gains, following upbeat economic data.
- The Danish economy grew by 4.9 percent on quarter in the three months to September, the most since the series began in 1991, after a 6.8 percent contraction in the previous period, a flash estimate showed.
- Moreover, weakness in the greenback against a basket of currencies further boosted the bid tone around the Danish currency.
- The dollar declined after U.S. Federal Reserve Chair Jerome Powell said during a discussion with other central bankers that progress in developing a coronavirus vaccine was welcome news but that near-term economic risks remain as infections accelerate, underscoring the likely need for additional government stimulus.
- USD/DKK is trading 0.1 percent lower at 6.3000, having hit high of 6.3385 on Wednesday, its highest since November 5.
- Immediate resistance is located at 6.3236 (21-DMA), close above could take it till 6.3379 (55-EMA).
- On the downside, support is seen at 6.2879 and any break below will take it till 6.2645.