USD/TWD may fall 99 - 146 pips

Our pivot point stands at 32.008.

Our preference

The downside prevails as long as 32.008 is resistance.

Alternative scenario

The upside breakout of 32.008, would call for 32.087 and 32.134.

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 is trading under both its 20 and 50 period moving average (respectively at 32.022 and 32.044). Finally, the USD/TWD is trading below its lower Bollinger band (standing at 31.943).

Supports and resistances

32.134 **

32.087 *

32.008 **

31.977

31.910 last

31.811

31.764 **

31.718 *

31.671 **

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