As a result of rebounding against a long term support line the common European currency has formed an ascending channel pattern against the Hong Kong Dollar, which is moving through one Fibonacci retracement level after another. Most recently the currency exchange rate has bounced off the resistance of the 23.60% Fibonacci retracement level at the 8.7740 level. The relevant Fibonacci retracement levels pair are measured by connecting the 2016 high and 2017 low levels. It is most likely that more attempts will be made at the resistance until it is broken. On the other hand the pattern's lower trend line might not hold the pressure from the Fibo, and in that case the channel would be broken, as the pair would head down to the 38.20% retracement level at 8.6289.
| Level | Rationale | Indicator | 4H | 1D | 1W | |||
| R4 | 8.8494 | Weekly R3 | MACD (12; 26; 9) | Buy | Buy | Buy | ||
| R3 | 8.8123 | Weekly R2 | RSI (14) | Neutral | Sell | Neutral | ||
| R2 | 8.7799 | 23.60% Fibo | Stochastic (5; 3; 3) | Sell | Sell | Sell | ||
| R1 | 8.7654 | Weekly R1 | ADX (14) | Neutral | Neutral | Neutral | ||
| S1 | 8.7283/82 | Weekly PP; 55-period SMA | CCI (14) | Neutral | Neutral | Sell | ||
| S2 | 8.6813 | Weekly S1 | AROON (14) | Buy | Buy | Buy | ||
| S3 | 8.6673/01 | 100-period SMA; trend line; monthly PP | Alligator (13; 8; 5) | Buy | Buy | Buy | ||
| S4 | 8.6441 | Weekly S2 | SAR (0.02; 0.2) | Buy | Buy | Buy | ||
| Aggregate | ↗ | ↗ | ↗ |