The common European currency is trading against the Hong Kong Dollar in the descending triangle with equal lows located at the 8.7047 level. The formation of this figure serves as a confirmation of the end of an uptrend, which lasted for the last two weeks. There is a possibility that the breakout in the downward direction will occur during this trading day, as the rate is facing resistance put by the monthly R2 at the 8.7138 level. However, if the pair manages to bypass this barrier, it will face no further resistance right until the upper trend line of the pattern, which is supported by the weekly PP at 8.7282. In this scenario, the rate most likely is going to make rebound and resume a movement in the downward direction.
| Level | Rationale | Indicator | 1H | 4H | 1D | |||
| R4 | 8.7282/85 | Weekly PP; 55-period SMA | MACD (12; 26; 9) | Sell | Sell | Sell | ||
| R3 | 8.7272 | 100-period SMA | RSI (14) | Neutral | Neutral | Sell | ||
| R2 | 8.7185 | Upper Bollinger Band | Stochastic (5; 3; 3) | Sell | Sell | Sell | ||
| R1 | 8.7138 | Monthly R2 | ADX (14) | Sell | Neutral | Neutral | ||
| S1 | 8.7047 | Trend line | CCI (14) | Neutral | Buy | Neutral | ||
| S2 | 8.6987 | Bottom Bollinger Band | AROON (14) | Buy | Buy | Buy | ||
| S3 | 8.6813 | Weekly S1 | Alligator (13; 8; 5) | Sell | Neutral | Buy | ||
| S4 | 8.6441 | Weekly S2 | SAR (0.02; 0.2) | Sell | Sell | Buy | ||
| Aggregate | ↘ | → | → |