Since the beginning of the week, the USD/DKK has entered a bearish trend that has seen the pair drop around 250 pips. According to technical indicators, the pair, which is currently trading around the 5.4669 level, will likely move further downward in the days ahead. With the next support line around 5.4500, now may be a great time for forex traders to open up sell positions in order to take advantage of this ongoing trend.
We will be looking at the 8-hour chart for USD/DKK, provided by ForexYard. The technical indicators being examined are the Moving Average, Relative Strength Index and MACD.
1. The currency pair is currently trading below its Moving Average, indicating that the pair is likely to move further downward in the near future.
2. The Relative Strength Index is currently around 70, right above what is typically considered to be the overbought region. This is a clear sign that the pair is likely to see further downward pressure in the near future.
3. It looks like an impending bearish cross is forming on the MACD. Should the indicator lines form a cross, it would be a clear sign that bearish movement is likely to continue.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
