Is the USD/DKK Facing a Downtrend?
November 4th, 2009 Posted in Analyst Picks, In-Depth Analysis
Name: Yan Petters
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The USD/DKK pair has recently dropped around 700 pips and is currently traded for the 5.0146 level. The 4-hour chat provides signal that this bearish move is likely to proceed, how far can it go?
• The chart below is the USD/DKK 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI).
• The Slow Stochastic has dropped below the 20-line, and is yet to provide a bullish cross. This indicates that the further bearish momentum is expected.
• The MACD is showing a sequence of bearish crosses. This shows that the bearish pressure is quite strong at the moment.
• The RSI continues to face down. It currently seems that for as long as the RSI doesn’t switch directions, the downtrend is likely to proceed.
• The pair is currently testing a very strong support level, placed at 5.005. If the pair will breach this level, it has the potential to drop all the way down towards the next support level which is placed at the 4.940 level.
