EUR/HKD 1W Chart: Rectangle

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Balanced supply and demand have been leading the movements of EUR/HKD, manifesting in a decent rectangle formation on the weekly chart. Areas of support and resistance have sketched themselves at 8.2214/1276 and 8.8053/8943 respectively, suggesting that a break outside of the pattern could be unlikely. While the 200-month SMA floats high above the current price range, 55 and 100-month SMAs put pressures from beneath, implying that the trend might have completed the correction phase and bulls are ready to take over. What speaks in favour of this scenario is the ascending triangle formation the rate has taken over the last year or so, making an upward breakout feasible over the first half of 2017, making 8.9582 the first target.
© Dukascopy Bank SA
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