© Dukascopy Bank SA
During the past 170 hours USD/HKD has been trading beneath the falling trend-line, respecting it on many occasions. This may signify that the currency pair is fluctuating within a bearish channel; however, there is no yet a reliable lower boundary of the formation. There is a potential trend-line, but there are too few confirmations of it at the moment.
In any case, the outlook on the pair is fairly bearish. Firstly, it has just bounced off the resistance at 7.7557. Secondly, most of the technical indicators are giving ‘sell' signals, especially on a daily chart. A serious bullish correction is expected to start somewhere below 7.7539.
© Dukascopy Bank SA