USD/DKK Broke Clear Head And Shoulders Pattern
AutoChartist | Dec 17, 2012 05:27AM ET
USD/DKK recently broke the Clear Head and Shoulders chart pattern identified by Autochartist on the daily charts. Autochartist rates the overall Quality of this chart pattern at the 5 bar level as a result of the slow Initial Trend (3 bars), higher Uniformity (4 bars) and near maximum Clarity (9 bars). The completion of this chart pattern reverses the preceding upward price correction to the earlier sharp weekly downward price impulse from the major resistance level 6.2000.
It should be noted that the top of this chart pattern (the Head, at point C) also serves as the right shoulder of the longer term weekly Head and Shoulders chart pattern (marked in red below) – which has also been recently completed. The right shoulder of this Head and Shoulders (E) formed when the price reversed down from the former support trend line of the longer-term upward price channel from May of 2011 that has been recently broken (by the C to D downward impulse). The pair is expected to fall further toward the Forecast Price 5.6246.
The following weekly USD/DKK chart shows the technical price levels mentioned above:
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