USD/DKK Forecast Today 11/9: Gains Momentum (Video+Chart)
Date
9/11/2024 3:09:33 PM
(MENAFN- Daily Forex)
The US dollar has rallied a little bit during the trading session on a Tuesday following the strength that we had seen on Monday against the Danish Krone. The market is worth paying close attention to because we may have just formed a significant bottom as we are now above the most recent swing high. Whether or not this holds remains to be seen, but I am looking at this as a market that could go looking to the 50-day EMA, which is at the 6.7964 level.
If we break above that, then we could go looking to the 6.85 region. In general, this is a market that I think continues to be very noisy, and unfortunately, that's the way most markets are behaving.
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When you look at a longer term chart, you can clearly see that the 6.65 level is an area of massive support that has been important going all the way back to the beginning of 2022. Really, at this point in time, if we do rally significantly, we could go looking to the seven level. Keep in mind this pair is highly influenced by the European Union, even though it's not the Euro, as the Danish are very quick to tie their currency to the Euro.
The markets will continue to see a lot of noise and ultimately this comes down to risk on or risk off the Danish interest rate at the moment, of course isn't necessarily drastically lower than the United States, but there is a positive swap to the upside, albeit only about a percent and three quarters. With this being the case, I think it makes a certain amount of sense that we have rallied but recognize that there is going to be a lot of noise just above that 50-day EMA. If we can break above that level, then we could see quite a bit of momentum for the US dollar. This was almost certainly a company some type of risk off behavior.
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