FxNews—The American dollar trades in an uptrend against the Danish Krone. The USD/DKK consolidation phase, from 6.99, eased near the 38.2% Fibonacci support level at 6.94, a level backed by the ascending trendline.
The USD/DKK 4-hour chart below shows the pair trades above the simple moving average of 50 and 100, meaning the uptrend prevails.
USD/DKK Technical Analysis – 20-June-2024
The technical indicators in the 4-hour chart suggest the uptrend will likely resume.
- The awesome oscillator bars are small, below the signal line, but the recent bar turned green, meaning the uptrend is gaining strength.
- The stochastic oscillator is above the median line, recording 55 in the description, meaning the bullish momentum elevates.
- The stochastic oscillator value is 48 and rising. This development in the %K line signifies that the primary bullish trend will likely resume.
USDDKK Forecast – 20-June-2024
The primary trend is bullish as long as the USD/DKK price hovers above the 38.2% Fibonacci at 6.94. This resistance level is backed by a simple moving average of 50 and the ascending trendline. Hence, from a technical standpoint, if the price remains above the key support level at 6.94, the uptrend will likely continue with the June 14 high at 6.99 as its first target.
Furthermore, if the price exceeds 6.99, the following key resistance will be April 16 at 7.03.
USD/DKK Bearish Scenario
The USD/DKK price must dip below the key resistance level at 6.94 for the trend to reverse from bullish to bearish. If this scenario unfolds, the downtrend from 6.99 could extend and initially target the %50 Fibonacci level at 6.913. Furthermore, if the selling pressure exceeds 6.913, the 61.8% Fibonacci level at 6.88 could be the next support level.
Please note that the resistance for the bearish scenario will be the simple moving average of 50.
USD/DKK Key Support and Resistance Level
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 6.94 / 6.91 / 6.88
- Resistance: 6.99 / 7.03
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.
