USD/HKD may fall 22 - 31 pips

Our pivot point stands at 7.8080.

Our preference

The downside prevails as long as 7.8080 is resistance.

Alternative scenario

Above 7.8080, look for 7.8096 and 7.8106.

Comment

The RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 7.8073 and 7.8071). Finally, the USD/HKD has penetrated its lower Bollinger band (7.8060).

Supports and resistances

7.8106 **

7.8096 *

7.8080 **

7.8074

7.8056 last

7.8034

7.8025 **

7.8015 *

7.8005 **

Number of asterisks represents the strength of support and resistance levels.