USD/HKD may fall 39 - 55 pips

Our pivot point is at 7.8116.

Our preference

As long as 7.8116 is resistance look for 7.8039.

Alternative scenario

Above 7.8116, look for 7.8142 and 7.8158.

Comment

The RSI is above 50. The MACD is negative and below its signal line. The penetration of 50 on the RSI should trigger further losses. Moreover, the price stands above its 20 period moving average (7.8093) but below its 50 period moving average (7.8095).

Supports and resistances

7.8158 **

7.8142 *

7.8116 **

7.8105

7.8094 last

7.8055

7.8039 **

7.8023 *

7.8008 **

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