USD/TWD may fall 182 - 261 pips

Our pivot point is at 32.052.

Our preference

The downside prevails as long as 32.052 is resistance.

Alternative scenario

The upside breakout of 32.052, would call for 32.185 and 32.265.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). 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 32.013 and 32.079).

Supports and resistances

32.265 **

32.185 *

32.052 **

31.999

31.925 last

31.743

31.664 **

31.585 *

31.506 **

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