© Dukascopy Bank SA
While late January the USD/HKD was attempting to advance beyond 7.7680, in February the currency pair gave up its bullish ambitions and was heavily sold off. Consequently, it started to trade in a down-trend, while being bound by two parallel falling lines.
Just recently the price tested the upper trend-line, when it was near the daily pivot point at 7.76, and is now headed towards the support at 7.7560, where we may expect a bullish correction to emerge. However, most of the SWFX market participants believe it is the U.S. Dollar that is going to outperform—at the moment 67% of open positions are long, although the technical indicators are currently mixed.
© Dukascopy Bank SA