Patterns: USD/DKK, EUR/DKK
|USD/DKK 1H Chart: Downside potential likely to prevail
At the end of November, the USD/DKK currency pair reversed south from the upper boundary of the long-term descending channel at 6.7950.
From a theoretical point of view, it is likely that some downside potential could prevail in the market in the medium term, as the exchange rate should target the lower channel line. Important level to look out for is the Fibonacci 0.005 retracement at 6.6843. However, note that the currency pair is supported by the Fibonacci 23.60% retracement at 6.7257. Therefore, the expected decline might not be immediate, and the pair could re-test the upper channel line within the following trading sessions.
EUR/DKK 1H Chart: Two scenarios likely
The Euro has been appreciating gradually against the Danish Krone since the beginning of November. As apparent on the chart, the EUR/DKK currency pair is testing the monthly PP at 7.4722.
Note that the exchange rate is supported by the 55-, 100– and 200-hour moving averages, currently located circa 7.4720. Therefore, it is likely that some upside potential could prevail in the market.
However, note that the currency pair is pressured by the Fibonacci 0.00% retracement at 7.4736. If the given level holds, it is likely a reversal south could occur in the nearest future. A potential downside target is the Fibonacci 23.60% retracement at 7.4640.
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