Forex Market: USD/DKK daily trading outlook

Friday’s trade saw USD/DKK within the range of 6.5667-6.6004. The pair closed at 6.5816, edging down 0.19% on a daily basis. It has been the 14th drop in the past 25 trading days and also a second consecutive one. The daily low has been the lowest level since April 13th, when a low of 6.5335 was registered. USD/DKK has advanced 0.33% so far during the current month, following two consecutive months of decline.

At 6:20 GMT today USD/DKK was edging down 0.24% on the day to trade at 6.5659. The pair touched a daily high at 6.5840 during the early phase of the Asian trading session, undershooting the daily R1 level, and a daily low at 6.5647 at 6:17 GMT.

On Tuesday USD/DKK trading may be influenced by the following macroeconomic report as listed below.

Fundamentals

United States

Housing Starts, Building Permits

The number of housing starts in the United States probably fell to 1.170 million units in March, according to market expectations, from the seasonally adjusted annual rate of 1.178 million during the prior month. The latter has been the highest number of starts since September 2015. In February starts of single-family houses increased at a monthly rate of 7.2% to 822 000, while starts of buildings with five units or more were 2.4% more to reach 341 000. In February, housing starts increased in the West (+26.1%), Midwest (+19.9%) and South (+7.1%). At the same time, starts were fewer in the Northeast (-51.3%).

Housing starts represent a gauge to measure residential units, on which construction has already begun every month. A start in construction is defined as the foundation laying of a building and it encompasses residential housing primarily.

The number of building permits in the country probably edged up to 1.200 million in March from an annual level of 1.167 million in February. Single-family authorizations rose at a monthly rate of 0.4% to reach 731 000 units in February, while permits of units in buildings with five units or more were reported to have slumped 9.1% to 401 000.

Building permits are permits, issued in order to allow excavation. An increase in the number of building permits and housing starts usually occurs a few months after mortgage rates in the country have been reduced. Authorizations are not required in all regions of the United States. Building permits, as an indicator, also provide clues in regard to demand in the US housing market. In case a higher-than-anticipated figure is reported, this would have a moderate bullish effect on the US dollar. The official housing data are due out at 12:30 GMT.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for USD/DKK are presented as follows:

R1 – 6.5847
R2 – 6.5878
R3 (range resistance) – 6.5909
R4 (range breakout) – 6.6001

S1 – 6.5785
S2 – 6.5754
S3 (range support) – 6.5723
S4 (range breakout) – 6.5631

By using the traditional method of calculation, the weekly pivot levels for USD/DKK are presented as follows:

Central Pivot Point – 6.6705
R1 – 6.6494
R2 – 6.7044
R3 – 6.7833

S1 – 6.5155
S2 – 6.4366
S3 – 6.3816