The Danish Kroner

Good afternoon Dynamic Traders,

This weekends chart is of the DKK which is showing signs of possible changing direction soon albeit that this would be against the heavy downward trend.

I mentioned this chart about a month ago saying the best direction at that time was with the trend and price did indeed offer about a further 500 pips, but did also say that a good fibonacci reversal area lay nearby to the southward side, and after tagging this price proceeded to move up about 1000 pips only to come back down to a similar area at which I wrote about it last time which is in conjunction with the strong psychological '0000' figure area and now after a possible 123 DB formation.

Although the initial entry point has been missed on Nov 11 with the doji candle formation a planned entry can be worked out here with proper analysis.

With this 123 DB pattern formation, a squeeze is now in progress and so after doing your own analysis you can decide whether going agaist the trend is your preferred way due to building confluences for this or to wait and see if the direction of the trend is still favourable, and continues.

AdvancedGet is showing a W5 in progress still with its next projection at around the 4.4400 - ( a little too far off possibly or is the trend going to be your friend here ? )

Therefore there is a pattern formation versus trend scenario happening here and due to confluences I am favouring a move up and will trade should the correct entry come about but will also trade the downward move should that occur and although for more intraday trading the lower timeframe could be offering this opportunity soon which I am keeping an eye on.

As always please ensure to do your own analysis before taking any trades.

Charts courtesy of AdvancedGet.

Good luck.

Clayton Farnworth.