Dukascopy Bank Team
Dukascopy Bank SA
USD/DKK 1H Chart: Channel Up
Comment: The US Dollar is expected to keep appreciating against the Danish Krone. USD/DKK has recently established a well-defined bullish channel after confirming a major support up-trend line at 6.58, meaning the near-term dips are to be limited by the weekly pivot point and the lower boundary of the pattern at 6.6436/21. At the same time, we should be wary of a strong resistance area at 6.6650/00, created by the daily R1, March 22 high and 200-hour SMA. If this obstacle is overcome, the pair is likely to steer for the weekly R1 at 6.7130 next. Alternatively, should the rate sink under 6.6436/21, the sell-off will presumably extend down to 6.5850. Meanwhile, the US Dollar is to some extent overbought, being that 63% of open positions are long.
USD/ZAR 1H Chart: Triangle
Comment: Following a precipitous decline as a result of USD/ZAR testing a multi-month down-trend, the pair is now trading within the boundaries of a triangle. Accordingly, the pattern should be eventually broken to the downside. At the moment, the key support level is 15.22. However, the bearish potential of the pattern, nearly 0.40 rands, may not be fully realised. The reason is a formidable support level at 15.06, which has already managed to withstand several attacks during the last five weeks. Nevertheless, if the bearish pressure persists and the price drops lower, the next objective will be 14.81, represented by the weekly S1. As for the sentiment in the SWFX market, most of the traders are already short the Greenback, namely 72% of them.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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