EUR/HKD 1H Chart: Descending TriangleEUR/HKD 1H Chart: Descending Triangle
The common European currency is trading against the Hong Kong Dollar in a descending triangle pattern . An existence of the figure became evident shortly after the currency pair failed to slip below the 9.1466 level multiple times.
In the early Monday morning the currency rate made a second rebound from the triangle’s resistance line and started to pave the way through a combination of the 55-, 100- and 200-hour SMAs as well as the updated weekly PP at 9.1962.
From the trade pattern theory, the pair should successfully reach the bottom trend-line and continue to fluctuate within the formation until the end of the week. From a technical perspective this scenario seems rational, provided that fundamental events will not cause an unexpected jump of the rate.