FxWirePro: USD/DKK retreats from 1-week peak, likely to break below 6.3000
Tuesday, August 4, 2020 9:56 AM UTC
- The Danish Krone surged, hovering towards a over 2-year peak recorded last week as the greenback eased across the board.
- The dollar index declined, weighed down by political wrangling over a U.S. relief plan and the gloomy outlook.
- Investors continued to disgest Denmark's upbeat Manufacturing PMI released yesterday, which showed manufacturing activiy index increased to 57.4 in July from an upwardly revised 53.1 in the previous month, pointing to the sharpest expansion in over a year amid the easing of coronavirus lockdown restrictions.
- USD/DKK is trading 0.3 percent down at 6.3105, having hit low of 6.2509 on Thursday, its lowest since May 2018.
- On Monday, the pair rose to a 1-week peak of 6.3669 but found major resistance at 10-DMA to close at 6.3301.
- Immediate resistance is located at 6.3622 (10-DMA), close above could take it till 6.3929.
- On the downside, support is seen at 6.2830 and any break below will take it till 6.2510.