FxNews—The U.S. Dollar downtrend resumed against the Danish Krone, hitting 6.85 in today’s trading session. The robust downtrend in the USD/DKK pair drove the relative strength index and the stochastic oscillator into the oversold territory.
The 4-hour chart below demonstrates the USD/DKK current price, the key support and resistance levels, and the technical indicators utilized in today’s analysis.
USDDKK Technical Analysis – 11-June-2024
As shown in the 4-hour chart, the pair trades in a bearish channel and below the 50- and 100-period moving average, demonstrating a strong downtrend. The other technical indicators suggest the downtrend prevails, but the Danish Krone might be overpriced against the U.S. Dollar.
- The awesome oscillator indicator value is -0.017, with red bars below the signal line. This decrease in the AO value means the bear market prevails.
- The relative strength index indicator is below the 30 level, showing an oversold market. The RSI line depicts 25 in the description. This indicates the market is oversold, and the U.S. Dollar could erase some of its recent losses against the Danish Krone in the current or next trading session.
- The Stochastic oscillator depicts 16 in the %K value, signifying the market is oversold, and the price could bounce from this point.
USDDKK Forecast – 11-June-2024
The primary trend is bearish because the price is below the 50- and 100-period SMA. Still, the RSI and stochastic oscillators are in oversold territory, meaning the USD/DKK price might step into a consolidation phase, or the trend could reverse from the bear market to a bull market.
The immediate resistance is at 6.87, and the primary trend remains bearish as long as the price hovers below this level. However, due to the oversold market condition, the bulls are likely to step in and raise the price to the 6.87 mark. If this scenario comes into play, traders and resistance should closely monitor the 6.87 mark for bearish candlestick patterns such as doji, shooting star, or bearish candlestick patterns to join the bear market.
USD/DKK Bullish Scenario
Note that if the bulls (buyers) cross above the descending trendline and the 6.87 resistance, the bearish outlook should be invalidated. In this case, the pullback could extend to the next resistance level, 6.90, followed by the July 1 low, 6.92.
USDDKK Key Levels – 11-July-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 6.83
- Resistance: 6.87 / 6.90 / 6.92
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
