© Dukascopy Bank SA
As a result of a precipitous decline seen in January, CAD/HKD had fallen from 7.32 down to 6.92. However, the currency pair proved to be unable to extend the decline beyond the latter point. Then, after 20 days, the price had once again attempted to break this support, but turned out to be unsuccessful.
Accordingly, now we are presented two distinct troughs that together may be considered as a double bottom pattern. Therefore, in case a neck-line at 7.1093 (Feb 19 high) gives in the course of the following few weeks, there will be a good chance for the loonie to appreciate up to 7.32 Hong Kong dollars.
© Dukascopy Bank SA