Daily Forex Update: USD/DKK

Analyst, Autochartist

USD/DKK is continuing the prevailing downtrend within the high Clarity Down Channel chart pattern identified by Autochartist on the daily charts. The overall Quality of this chart pattern is rated at the 4 bar level which is the consequence of the following values of the Quality indicators: low Initial Trend and Uniformity (measured at the 2 and 3 bar level respectively) and the higher Clarity (rated at the 7 bar level).

The low Initial Trend value corresponds to the short-term sideways price action that preceded this chart pattern and which developed as the price approached strong support at the round price level 5.2000. The price eventually rebounded from this support level – creating the C point of this chart pattern. The 5.2000 level (now acting as resistance after it has been broken) also played the role in the creation of the latest downward reversal – point B on the chart below — the price reversed from the resistance area made out of 5.2000 and the 50% Fibonacci Retracement of the first downward impulse of this chart pattern ( from A to D). The pair is set to continue downward movement in the nearest time.

*Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.

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June 30th, 2011 in Forex News

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