Forex Market: EUR/HKD daily trading forecast

Yesterday’s trade saw EUR/HKD within the range of 9.9604-10.0611. The pair closed at 9.9716, losing 0.73% on a daily basis.

At 7:16 GMT today EUR/HKD was up 0.10% for the day to trade at 9.9785. The pair touched a daily high at 9.9862 at 6:50 GMT.

Fundamental view

Hong Kong

The rate of unemployment in Hong Kong probably rose to 3.4% during the period June-August, according to the median forecast by experts, from 3.3% during May-July. It represents the percentage of the eligible work force that is unemployed, but is actively seeking employment.

The number of unemployed people in Hong Kong (without a seasonal adjustment) rose by 5 700 from 127 600 in April-June to 133 300 in May-July. The number of underemployed persons was 57 900 during May-July, almost unchanged compared to 58 000 during April-June 2014, according to the Census and Statistics Department in Hong Kong.

Total employment rose by 26 400 from 3 744 700 in the period April – June to the all-time high 3 771 100 people in May-July 2014.

In case the unemployment rate met expectations or even increased further, this would have a bearish effect on the local currency. The official employment data is due out at 8:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 9.9977. In case EUR/HKD manages to breach the first resistance level at 10.0349, it will probably continue up to test 10.0984. In case the second key resistance is broken, the pair will probably attempt to advance to 10.1357.

If EUR/HKD manages to breach the first key support at 9.9343, it will probably continue to slide and test 9.8970. With this second key support broken, the movement to the downside will probably continue to 9.8336.

The mid-Pivot levels for today are as follows: M1 – 9.8653, M2 – 9.9157, M3 – 9.9660, M4 – 10.0164, M5 – 10.0667, M6 – 10.1171.

In weekly terms, the central pivot point is at 10.0242. The three key resistance levels are as follows: R1 – 10.0836, R2 – 10.1187, R3 – 10.1781. The three key support levels are: S1 – 9.9891, S2 – 9.9297, S3 – 9.8946.