Patterns: USD/DKK, EUR/DKK
USD/DKK 4H Chart: Two scenarios likely
The USD/DKK currency pair has been trading downwards since the beginning of July.
Given that the exchange rate is pressured by the 55-hour moving average near 6.4400, it is likely that some downside potential could prevail in the market. In this case the rate could target the psychological level at 6.1000.
On the other hand, it is likely that the currency pair could reverse north in the nearest future. In this case the pair could raise to the psychological level at 6.6500.
EUR/DKK 4H Chart: Descending channel in sight
The EUR/DKK exchange rate has been trading within a descending channel since the end of June.
From a theoretical point of view, it is likely that the currency pair could continue to trade downwards within the given channel in the medium term. In this case the pair could gain support from the monthly S3 at 7.4344.
Meanwhile, note that the exchange rate would have to decline below the monthly S2 at 7.4411. If the given support level holds, it is likely that a breakout north could occur, and the rate could target the Fibo 38.20% at 7.4581.
Author
Dukascopy Bank Team
Dukascopy Bank SA
Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.
