FxNews—The American currency rebounded from the August 5 low at 6.77 against the Danish Krone and tested the July 16 high at 6.86 as resistance. As of writing, the USD/DKK currency pair trades bearishly at about 6.83.
The 4-hour chart below demonstrates the price, key support and resistance levels, and the technical indicators utilized in today’s analysis.
USDDKK Technical Analysis – 12-August-2024
The primary trend of the currency pair in discussion should be considered bearish because the price is below the 50- and 100-period simple moving averages. That said, the other technical indicators suggest a sideways and low-momentum market.
- The awesome oscillator is above the signal line with short bars. Interestingly, the recent bar turned red, meaning the market lacks momentum but is inclined to a downtrend.
- The relative strength index indicator moves alongside the median line, signifying the sideways market.
USDDKK Forecast – 12-August-2024
The primary barrier for the bullish momentum rests near the 100-period SMA-backed resistance at 6.86, the July 16 high. The uptick momentum from the August 5 low at 6.77 will likely resume if the bulls (buyers) close and stabilize the price above 6.86.
If this scenario unfolds, the path to the July 24 high at 6.89 could be paved. Furthermore, if the price exceeds 6.89, the next bullish barrier will be the August 1 high at 6.92.
- Also read: USDCAD Technical Analysis – 8-August-2024
USDDKK Bearish Scenario – 12-August-2024
The July 17 low at 6.81 provides immediate resistance. The primary bearish trend will likely be triggered if the price closes and stabilizes below this support. If this scenario occurs, the August 5 low at 6.77 could be the next bearish target.
USDDKK Support and Resistance Levels – 12-August-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: 6.81 / 6.77
- Resistance: 6.86 / 6.89 / 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.
