© Dukascopy Bank SA
The last 180 hours USD/HKD has been trading below the 200-hour SMA and at the same time forming the bearish channel. Given considerable length of the pattern, its edges should be fairly reliable, but we would rather apply this characteristic only to the upper trend-line, since it has received significantly more confirmations than the lower one.
Right now the currency pair is found exactly near the upper trend-line, namely at 7.7550. Accordingly, we would expect the U.S. Dollar to stop appreciation and commence development of the leg down that in turn may extend down to 7.7532, but will meet 7.7545 and 7.7538 on the way there.
© Dukascopy Bank SA