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USD/DKK Technical Analysis - USD/DKK Trading: 2022-10-26
USD/DKK Technical Analysis Summary
Below 7,43
Sell Stop
Above 7,8
Stop Loss
| Indicator | Signal |
| RSI | Sell |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Sell |
| Bollinger Bands | Sell |
USD/DKK Chart Analysis
USD/DKK Technical Analysis
On the daily timeframe, USDDKK: D1 approached the support line of the long-term uptrend. It must be broken down before opening a position. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if USDDKK: D1 falls below the lower Bollinger Band and the last 2 lower fractals: 7.43. This level can be used as an entry point. Initial risk cap possibly above the high since June 2002, the last 3 upper fractals, the upper Bollinger band and the Parabolic signal: 7.8. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal high. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (7.8) without activating the order (7.43), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Forex - USD/DKK
Investors are expecting a slowdown in the Fed's rate hike. Will USDDKK quotes continue to decline?
The US dollar index fell on Tuesday, as investors do not rule out that the Fed will pause in raising rates. According to CME FedWatch, the Fed has a 96% chance of raising rates by 0.75% to 4% from the current 3.25% at its Nov. 2 meeting. This will be the 4th consecutive increase of 0.75%. After that, at the meeting on December 14, the rate may be increased by 0.5%. The probability of this CME FedWatch now estimates at 47%. Previously, the majority of the Fed representatives expressed the opinion that the rate could be raised only up to 4.75-5%. After that, it should stay there until inflation falls to the target level of 2-3%. Recall that inflation in the US has already begun to decline. In June it was 9.1% y/y, and in September - 8.2% y/y. Data for October will be released on November 10. The Denmark National bank rate is now 0.8% (Lending rate) with inflation in September 10% y / y (this is a 40-year high). The main factor behind the strengthening of the Danish krone could be Denmark's record trade surplus and a large amount of foreign exchange reserves. Retail Sales will be released in Denmark on October 27 and Industrial Outlook on October 28. These economic data may affect the dynamics of USDDKK.
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