USD/TWD may fall 87 - 130 pips

Our pivot point is at 32.488.

Our preference

The downside prevails as long as 32.488 is resistance.

Alternative scenario

Above 32.488, look for 32.560 and 32.603.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 32.557 and 32.601).

Supports and resistances

32.603 **

32.560 *

32.488 **

32.459

32.375 last

32.288

32.245 **

32.202 *

32.159 **

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