By Anton Eljwizat – The USD/DKK has recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the daily chart signals that a bearish reversal is imminent, and it might have the potential of reaching towards 5.1000 in the coming days. This might be a good opportunity for forex traders to enter the trend at a very early stage and a great entry price.
• The technical indicators used are the Slow Stochastic, MACD, and Relative Strength Index (RSI).
• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• Point 2: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Point 3: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 4: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
USD/DKK Daily Chart
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