The downward movement means the Danish krone is strengthening against the US dollar. In November, Denmark's trade balance and current account balance increased, as well as increased industrial production. In addition, inflation in December fell to 3.1% y/y from 3.4% in November. In addition, the strengthening of the Danish krone may contribute to the dissatisfaction of the authorities with negative rates on deposits. Theoretically, this could be followed by their increase. Now the deposit rate Danmarks Nationalbank (Danish Central Bank) is -0.6%. The Danish Financial Supervisory Authority believes that the negative rates are unreasonable fees for banking services and has addressed the issue to the European Commission. Recall that negative rates on deposits in Denmark have been in effect since 2012. Another positive for the crown could be the lifting of a significant part of the anti-coronavirus restrictions in Denmark.
| Indicator | VALUE | Signal |
|---|
| RSI | | Sell |
| MACD | | Sell |
| MA(200) | | Sell |
| Fractals | | Sell |
| Parabolic SAR | | Sell |
| Bollinger Bands | | Sell |
Summary of technical analysis
| Order | Sell |
| Buy stop | Below 6.48 |
| Stop loss | Above 6.62 |