USD/HKD 1H Chart: Channel Up

The US Dollar has appreciated substantially against the Hong Kong Dollar since early 2017, currently standing near the 7.8240 mark. Recently, the given pair has formed a minor channel up that is guiding the Greenback towards 7.8286—the highest level since mid-2007. This suggests that the rate should be due for a long-term fall. In short-term, however, technical indicators flash mixed signals. On one hand, the US Dollar has lost strength of its momentum north, as apparent from the failure to reach the upper channel boundary in its last wave up. Thus, the previously-described fall may come even before the aforementioned high. On the other hand, there may still be some upside potential that could lead the Greenback up to the 7.8275/90 area. By and large, the pair is being supported by the 55-hour SMA since the formation of the channel up. A breach of this line could provide the necessary confirmation of the rate’s further depreciation.

Trade closed: target reached:

The US Dollar is likely to recover some losses in the upcoming hours; possible upside limit - the lower channel boundary near the 7.82 area.