FxWirePro: USD/DKK plunges to 1-week low, good to sell on rallies

• The Danish Krone surged, extending gains for the fifth consecutive session, as the greenback declined to a 1-week low.
   
• On Wednesday, the U.S. Senate approved a $2 trillion emergency package to offset the economic impact of the coronavirus pandemic. 
   
• However, the dollar index slumped as a flight to cash offset growing hopes for a massive U.S. economic stimulus to stem the coronavirus outbreak’s economic toll. 
   
• The Danish currency was also supported by better-than-expected retail sales figures. 
   
• Denmark's retail Sales increased 2.90 percent in February from a downwardly revised 0.4 percent in January, while on an annualized basis, it increased by 5.7 percent in February, following a downwardly revised 2.2 percent rise in the previous month.
   
• USD/DKK is trading 0.6 percent down at 6.8250, having hit high of 7.0236 on Monday, its highest since April 2017.
   
• Momentum indicators are bearish on hourly charts - RSI weak at 29, MACD supports downside and Stochs are at oversold levels.
   
• Immediate resistance is located at  6.8818 (7-EMA), close above could take it till 6.9015 (38.2 Fib).
   
• On the downside, support is seen at 6.8151 (21-EMA), and any break below will take it till 6.8064.
   

Recommendation: Good to sell on rallies around 6.8603, with stop loss of 6.8715 and target price of 6.8151.