USD/HKD ST: the RSI is overbought
26-May-11
05:22
7.777 is our pivot point.
Our preference: the upside prevails as long as 7.777 is support.
Alternative scenario: the downside breakout of 7.777 would call for 7.77 and 7.766.
Comment: the RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the pair is trading above both its 20 and 50 MAs (standing respectively at 7.7736 and 7.7771). The USD/HKD is currently trading near its 52 week low at 7.7502 reached on 04/11/10.
Supports and resistances:
7.801 *
7.797 **
7.793
7.7832 last
7.779
7.777 **
7.77 *
Ticker: HKD
