EUR/HKD 4H Chart: Triangle

EUR/HKD has just escaped the boundaries of the triangle it was forming the past two months by breaking the lower trend-line of the figure. Therefore the bias with respect to the exchange rate is now bearish. The first target at 10.6990 has already been reached, but if the resistance near 10.7075 stands its ground, the price should eventually slide down to 10.6062, namely the Apr 4 low, even though some of the weekly technical indicators are pointing north right now. At the same time an overwhelming majority of the SWFX market participants expect the Euro to depreciate, since as many as 71% of the traders are currently holding short positions.