USD/HKD may rise 25 - 33 pips

Our pivot point stands at 7.8086.

Our preference

The upside prevails as long as 7.8086 is support.

Alternative scenario

The downside breakout of 7.8086 would call for 7.8072 and 7.8064.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 7.8077 and 7.8071). Finally, the USD/HKD has crossed above its upper Bollinger band (7.8102).

Supports and resistances

7.8151 **

7.8143 *

7.8135 **

7.8127

7.8102 last

7.8092

7.8086 **

7.8072 *

7.8064 **

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