The Euro has been depreciating against the Hong Kong Dollar since the beginning of August when the EUR/HKD currency pair reversed south from the resistance level—the monthly R1 at 8.8219. Currently, the pair is testin the support level—the weekly S1 at 8.6892.
Note that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages, it is likely that some downside potential could prevail in the market. The rate could reach the lower boundary of the long-term descending channel in the 8.6000/8.6500 range.
If the given channel hold, it is likely that a reversal north could follow. Otherwise, it is expected that the pair could reach the monthly S2 at the 8.5114 mark.
