Patterns: USD/THB, USD/DKK

USD/THB 1H Chart: Bullish momentum eases

The USD/THB exchange rate was trading in an ascending channel for three-and-a-half months prior to breaching this pattern to the upside mid-June. This breakout was caused by the strong 2.88% surge which pushed the rate as high as the 32.80 mark.

The US Dollar has since edged even higher past the monthly R3 at 33.20. This is the pair's highest location since October 2017.

It is apparent that this strong appreciation has eased during the following two weeks. This means that bulls are unable to push higher and thus are likely to give up their positions. In addition, technical indicators on the 4H chart are converging with the price level which in turn strengthens this bearish scenario.

The nearest target for the following trading sessions is the breached senior channel and the 200-hour SMA. A successful breakout could result in a test of the 200-period SMA near 32.20.

USD/DKK 1H Chart: Breakout expected

USD/DKK has been ranging in the 6.3000/6.4715 since mid-May. This movement sideways has been bounded in a four-month ascending channel.

The US Dollar surged significantly on June 14, but was nevertheless stopped by the upper boundary of the above range. This shows that bulls are no longer able to push the pair higher—up to the senior channel line near 6.70.

This allows to think that a medium-term decline is in sight. In order to confirm this scenario, the US Dollar has to breach the combined support of the 100– and 200-period (4H) SMAs located at 6.37. If this breakout occurs, the following target is the lower range line or the 23.60% Fibonacci retracement at 6.30 and 6.2320, respectively.