Patterns: USD/DKK, TRY/JPY
|USD/DKK 1H Chart: Greenback trades in line with pattern
USD/DKK has been trading in an ascending channel for the last five weeks, thus breaching a dominant senior channel along the way in early May.
The latest test of this junior pattern occurred on Monday when the pair reversed from the weekly S1 at 6.2088. The Greenback, however, failed to make a full retracement from the breached channel.
From theoretical point of view, the pair might still realise the existing upside potential until the upper boundary of this medium-term channel and the weekly R3 at 6.36. Even though technical indicators are currently located in the overbought territory, technical signals for the following session are still bullish.
If looking from the weekly perspective, the US Dollar is expected to reverse from the 6.36 area and begin edging lower until the bottom channel line somewhere in the 6.28/30 range.
TRY/JPY 1H Chart: Pair shows upside potential
The movement of TRY/JPY has been bounded in an descending channel during the past three weeks. This pattern is a part of a medium-term channel which has prevailed since early 2018.
Given that the pair breached the senior channel last week, traders are expected to see a retracement from its bottom boundary circa 25.45. It is likely that this mark, reinforced by the 100– and 200-hour SMAs and the weekly PP, surrenders under the bullish pressure and allows for further advance towards the medium-term channel located near 26.30.
In terms of downside potential, the nearest support is set by the weekly and monthly S3s circa 24.00, while no other barriers are located nearby. It is unlikely that the pair falls below this 24.00. If such situation occurs, the next target is the 23.00 mark.
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