USD/DKK 1H Chart: Declining in medium pattern
After breaking the lower trend line of the previously active dominant pattern, the USD/DKK currency exchange rate has been declining in a medium scale descending channel.
Recently the pair bounced off the resistance of the PP at 6.38 and began a decline, which has resulted in the booking of a new low level for the USD/DKK pair.
The rate is most likely going to continue in this way until it reaches the lower trend line of another long term descending pattern just below the 6.34 mark.
Recently the pair bounced off the resistance of the PP at 6.38 and began a decline, which has resulted in the booking of a new low level for the USD/DKK pair.
The rate is most likely going to continue in this way until it reaches the lower trend line of another long term descending pattern just below the 6.34 mark.
Comment:
As the US Dollar finally found support against the Danish Krona after reaching its target on Monday, a new pattern was spotted.
Namely, the junior pattern was charted on Wednesday. The pair is trading in a junior ascending pattern, which is aimed at the upper trend line of the dominant descending channel.
In general, the rate is set to face the resistance of the 200-hour SMA at 6.3768 and a pivot point at 6.38 before it surges up to the dominant pattern’s resistance near the 6.3950 mark.
As the US Dollar finally found support against the Danish Krona after reaching its target on Monday, a new pattern was spotted.
Namely, the junior pattern was charted on Wednesday. The pair is trading in a junior ascending pattern, which is aimed at the upper trend line of the dominant descending channel.
In general, the rate is set to face the resistance of the 200-hour SMA at 6.3768 and a pivot point at 6.38 before it surges up to the dominant pattern’s resistance near the 6.3950 mark.
Comment:
The US Dollar, as expected previously, surged against the Danish Krona. However, the surge did not occur exactly as expected. Namely, the currency exchange rate surged more than expected.
During the surge the pair broke the upper trend line of the junior and dominant pattern. On the observable chart one can only observe the broken junior pattern, as the dominant drawn pattern is a new one.
The new pattern uses the recent high level together with a previous high as reference points for the channel pattern.
In general, it is expected that a decline takes place in the near, mid-term and long term future.
The US Dollar, as expected previously, surged against the Danish Krona. However, the surge did not occur exactly as expected. Namely, the currency exchange rate surged more than expected.
During the surge the pair broke the upper trend line of the junior and dominant pattern. On the observable chart one can only observe the broken junior pattern, as the dominant drawn pattern is a new one.
The new pattern uses the recent high level together with a previous high as reference points for the channel pattern.
In general, it is expected that a decline takes place in the near, mid-term and long term future.
The target set of the USD/DKK currency exchange rate’s decline was reached shortly after the publication of the currency pairs review on Friday. The reason for that was the release of the weaker than expected US labor market data, which revealed that the US labor market is not growing as much as expected.
During the fall not only the lower trend line of the medium pattern was reached, but it was passed on Monday morning. Due to that reason an update of the situation is created.
The rate is expected to continue the decline until the rate reaches the support level near the 6.2860 mark.