Forex Market: USD/DKK daily trading outlook

Yesterday’s trade saw USD/DKK within the range of 6.5377-6.5840. The pair closed at 6.5519, losing 0.47% on a daily basis. It has been the 15th drop in the past 26 trading days, a third consecutive one and also the steepest one since March 29th, when the exotic cross plummeted 0.86%. The daily low has been the lowest level since April 13th, when a low of 6.5335 was registered. USD/DKK has trimmed its advance to a mere 0.04% so far during the current month, following two consecutive months of decline.

At 6:23 GMT today USD/DKK was inching down 0.05% on the day to trade at 6.5489. The pair touched a daily high at 6.5603 during the early phase of the Asian trading session, undershooting the daily R2 level, and a daily low at 6.5428 during mid-Asian trade.

The recent bearish leg will probably continue. The daily time frame reveals that the perfect order of the 21-day, 55-day, 100-day and 200-day EMAs has already formed, while bullish momentum has begun to fade. The 14-period RSI is below 50.00 and still has some room to run before reaching its oversold zone. Short-term support may be seen at the low from April 13th (6.5335). Longer-term support will probably be received within the 6.4880-6.4950 area.

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

Fundamentals

United States

Existing Home Sales

The index of existing home sales in the United States probably rose 3.5% to a level of 5.30 million in March compared to February, according to the median estimate by experts. In February sales were 7.1% lower from a month ago to reach 5.08 million. Sales of new single-family houses fell at a monthly rate of 7.2% in February, while sales of condos dropped 6.6%. At the same time, the average sales price was 1.5% lower from a month ago.

In case the index rose at a steeper monthly rate than anticipated, this would have a limited bullish effect on the US dollar. The National Association of Realtors (NAR) is to release the official figure at 14:00 GMT.

Daily and Weekly Pivot Levels

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

R1 – 6.5561
R2 – 6.5604
R3 (range resistance) – 6.5646
R4 (range breakout) – 6.5774

S1 – 6.5477
S2 – 6.5434
S3 (range support) – 6.5392
S4 (range breakout) – 6.5264

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