USDDKK pushes through Thursday's high


US Dollar/Danish Krone (USDDKK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team

Highlights

USDDKK pushes through key technical resistance level
USDDKK dominated by bulls lifting the market higher throughout the day
USDDKK closes higher for the 2nd day in a row
USDDKK pushes through Thursday's high

Overview

Moving higher for the 2nd day in a row, USDDKK finished the week -0.66% lower at 6.8435 after gaining 332 pips (0.49%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 6.8179, the market confirmed its breakout through the previous session high after trading up to 366 pips above it intraday.

Daily Candlestick Chart (USDDKK as at May 22, 2020):

Daily technical analysis candlestick chart for US Dollar/Danish Krone (USDDKK) as at May 22, 2020

Friday's trading range has been 469 pips (0.69%), that's slightly below the last trading month's daily average range of 507 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDDKK.

One bullish candlestick pattern matches today's price action, the White Candle.

Buyers managed to take out the key technical resistance level at 6.8336 (now S1), which is likely to act as support going forward. The last time this happened on May 5th, USDDKK gained 0.35% on the following trading day.

Although USD/DKK is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

As prices are trading close to May's high at 6.9293, upside momentum could speed up should the forex pair mark new highs for the month. Further selling might move prices lower should the market test April's nearby low at 6.7621.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for USD/DKK. Out of 404 times, USDDKK closed higher 53.96% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.49% with an average market move of -0.03%.

With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more


Market Conditions for USDDKK as at May 22, 2020

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