FxNews—The American Dollar has been consolidating against the Danish Krone since the August 26 low of 6.659. As of writing, the USD/DKK currency pair trades at about 6.741, slightly below the August 14 low, in conjunction with the 100-period simple moving average.
The USD/DKK 4-hour chart below shows the price, the Fibonacci levels, and the technical indicators utilized in today’s analysis.
USDDKK Technical Analysis – 30-August-2024
The primary trend is bearish as the pair trades below the 100-period simple moving average. Interestingly, the 4-hour chart formed a long-wick bearish candlestick pattern, signifying the bull market weakening.
- In addition to the SMA and the candlesticks, the stochastic oscillator hovers in overbought territory, indicating an exhausted bull market.
- The relative strength index line shows 68 in the value, nearing overbought territory, signifying that the U.S. Dollar could be overpriced against the Danish Krone.
Overall, the technical indicators in the USD/DKK 4-hour chart suggest the primary trend is bearish and the market is overbought. Hence, the price could dip from the August 14 low at 6.752, in conjunction with the 38.2% Fibonacci level.
USDDKK Forecast – 30-August-2024
The immediate support rests at the 23.6% Fibonacci support level, the 6.722 mark. The bear market will likely be triggered if the sellers close and stabilize below the immediate support.
If this scenario unfolds, the next support will be the August 29 low at 6.695. Furthermore, if the selling pressure exceeds 6.695, the next supply zone will be August 26, low at 6.650.
The bear market should be invalidated if the price exceeds the immediate resistance at 6.752 or the 100-period simple moving average.
- Also read: USD/CAD Technical Analysis – 30-August-2024
USDDKK Bullish Scenario – 30-August-2024
The 100-period simple moving average, at 6.752, neighbors the 38.2% Fibonacci resistance level, which is the immediate barrier to the current bullish momentum.
For the uptrend to resume, bulls (buyers) must close and stabilize the price above the 6.752 barrier. If this scenario occurs, the bullish wave will likely extend to the August 5 low at 6.77.
Furthermore, if the buying pressure exceeds 6.77, the next resistance area will be the August 15 high at 6.81, in conjunction with the 61.8% Fibonacci retracement level.
USDDKK Support and Resistance Levels – 30-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: 6.722 / 6.695 / 6.659
- Resistance: 6.752 / 6.776 / 6.815
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.
