By: Dima Chernovolov
USD/DKK today broke the well-formed Triangle chart pattern identified by Autochartist on the daily charts. The overall Quality of this chart pattern is rated at the 8 bar level as a result of the low Initial Trend (2 bars) and near maximum Uniformity and Clarity (both rated at the 9 bar level). The completion of this Triangle follows the preceding weekly upward price impulse from May of 2011. Both of the connecting points of the lower support trendline of this Triangle (points C and D on the chart below) formed when the pair reversed up from the support area close to the support level 5.7200 (former strong resistance which reversed the pair down a few times at the start of this year) coinciding with the 38.2% Fibonacci Retracement of the aforementioned preceding weekly price impulse from 2011. The pair is expected to rise further toward the Forecast Price 5.9131.
The following weekly USD/DKK chart shows the technical price levels mentioned above:
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