USD/HKD recently broke the daily Descending Triangle chart pattern indentified by Autochartist.
Autochartist rates the overall Quality of this Descending Triangle at the 9 bar level which reflects the maximum Initial Trend (10 bars), average Uniformity (5 bars) and substantial Clarity (9 bars). The lower support trendline of this chart pattern stands on two recent upward price reversals from the strong support at 7.7530 (which has reversed all downward impulses of this pair from the February of this year). The pair recently broke the lower support trendline of this chart pattern, which runs parallel to the major support 7.7530 mentioned above.
The last Friday’ Closing price is near the round support level 7.7500 (the last time it reversed USD/HKD was in the end of 2010). This support should be broken for the pair to fall toward the Forecast Price 7.7487.
The following weekly USD/HKD chart highlights the aforementioned support levels:
