By Russell Glaser – The USD/DKK daily chart below displays an increasing bullish trend with a major and a minor trend line. The slope for the second trend line is greater than the first and signals that the trend is increasing in its speed. The Danish krone has been strengthening and the pair has fallen from its high in the recent bullish trend and may have arrived at an attractive price to enter long on the pair.
The Danish krone has almost retraced to the 23.6% Fibonacci level at 5.9000 for the recent daily trend and has since bounced higher. We can see from the chart that another support line has formed from this week’s trading at a price of 5.9650 (S1). This retracement has formed the second contact point for minor trend line.
A technical signal to buy is provided by the RSI 14. The indicator has entered into the oversold region and is now rising above the 30 line.
Traders may want to go long on this signal with the first target at the resistance line at 6.1200 (R1). The second target would be the swing high of the bullish trend at a price of 6.2500.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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