USD/DKK 1H Chart: Pair suggests breakoutIt might be said that USD/DKK is trading in three channels simultaneously. The most prominent one has confined the rate in a downward-sloping movement since early December, 2016, as apparent on the daily chart. The two most recent ones were formed late in August (as a new up-wave) and September. Meanwhile, the rate tested the upper boundary of the long-term channel earlier this week.
However, the diminishing trading range of the medium ascending channel suggest that the US Dollar might still test the 6.31/6.32 area, supported by the 55-, 100– and 200-hour SMAs and the weekly PP, prior to dashing through the upper boundaries of the senior and most junior channels.
The upward target could be the monthly R1 and the weekly R2 at 6.3822. Even if this surge does not occur right away, the rate being located near its three-year low at 6.1588 could pressure the rate for a surge in the medium or even long term.
