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Forex Market: EUR/HKD daily forecast

During yesterday’s trading session EUR/HKD traded within the range of 10.4796-10.5177 and closed at 10.4856.

At 6:21 GMT today EUR/HKD was gaining 0.02% for the day to trade at 10.4837. The pair touched a daily high at 10.4901 at 2:05 GMT.

Fundamental view

Euro zone

The annualized final consumer price index in the Euro zone, evaluated in accordance with Eurostat’s harmonized methodology, probably remained unchanged at 0.5% in June, matching the preliminary estimate reported on June 30. In May the annualized final HICP also stood at 0.5%, as reported on June 16th. The index shows the change in price levels of a basket of goods and services from consumer’s perspective and also reflects purchasing trends. The HICP is used to evaluate and compare inflation rates between Member States, according to Art . 121 of the Amsterdam’s Agreement and directives by the European Central Bank (ECB), in order to achieve price stability and the implementation of monetary policy. In case the HICP increased more than anticipated, thus, approaching the 2% inflation objective set by the ECB, this would support demand for the euro, because of the greater possibility of an interest rate hike. Eurostat is scheduled to release the official data at 9:00 GMT.

Hong Kong

The jobless rate in Hong Kong probably remained unchanged at 3.1% in June, matching the 3.1% reading in the previous month. The jobless rate in the country averaged 3.75% from 1981 until 2014, marking an all time high of 8.5% in June 2003 and a record low of 1% in July 1989.

The unemployment rate is compiled, based on data obtained from a monthly General Household Survey. The workforce is defined as the land-based non-institutional population aged 15 and over. On the other hand, the unemployed people should fulfill the following conditions: haven’t worked for pay or profit in the 7 days before enumeration; haven’t had the ability to work in the 7 days before enumeration; have actively sought work 30 days before enumeration.

The Hong Kong unemployment rate will be reported by the nation’s Census and Statistics Department at 8:30 GMT. In case the jobless rate is lower-than-expected, this would heighten the appeal of the Hong Kong dollar.

Technical view

Screenshot from 2014-07-17 09:25:55

According to Binary Tribune’s daily analysis, in case EUR/HKD manages to breach the first resistance level at 10.5090, it will probably continue up to test 10.5324. In case the second key resistance is broken, the pair will probably attempt to advance to 10.5471.

If EUR/HKD manages to breach the first key support at 10.4709, it will probably continue to slide and test 10.4562. With this second key support broken, the movement to the downside will probably continue to 10.4328.

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