Danske Bank- "Strategy Summary – Buy at market (1.5285) for an objective of 1.6185. Place stop at 1.0500.
The trend lower off the 8 October 2008 peak at 2.7090 (not shown) reached a low of 1.4550 on 15 February. A wedge type pattern has since developed which, given the heavily over-sold nature of the market, may be part of a broader basing structure. Both the 50 and 100-Week MAs have flattened out, highlighting the diminished momentum, and bulls are now mounting a stand from 1.4960 (21 August /22 January lows).
Clearing 1.5375 (8 January high) will open the way for a test of the wedge upper boundary at 1.5620 and the 31 December 2012 high at 1.5675. Above here strengthens for 1.5885 next (5 October high) ahead of the 2012 peak (23 May) at 1.6185. Further out, scope is seen for an attempt on 4 October/9 August 2011 highs at 1.6355/1.6385.
We will place our stop just below the 29 January low (1.5005) at 1.5000. Below here the focus shifts lower again towards the wedge lower boundary at 1.4855."