Forex Market: EUR/HKD daily forecast

During Friday’s trading session EUR/HKD traded within the range of 10.4583-10.4923 and closed at 10.4854.

At 6:06 GMT today EUR/HKD was gaining 0.1% for the day to trade at 10.4956. The pair touched a daily high at 10.5027 at 4:30 GMT, breaching the first key resistance.

Fundamental view

Euro zone

At 8:00 GMT Italy’s National Institute of Statistics is expected to release a report on industrial new orders in May. The annualized new orders rose 6.2% in April, while in monthly terms the indicator registered a 3.8% increase. It measures the change in value of new orders, received by industrial sector companies, for delivering a variety of products. Only enterprises with over 20 employees are included in the survey. New orders are closely related with future industrial activity. In case the indicator rose in value more than expected, this would provide support to demand for the euro.

Hong Kong

At 11:30 GMT on Monday, the Census and Statistics Department of Hong Kong will release the nations Consumer Price Index (CPI) for June. In May the index came in at 3.7%.

The Consumer Price Index (CPI) measures the changes over time in the price level of consumer goods and services generally purchased by households in Hong Kong. The indicator, which measures the year-on-year rate of change in the CPI, is widely used as an indicator of the inflation affecting consumers.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 10.4787. In case EUR/HKD manages to breach the first resistance level at 10.4990, it will probably continue up to test 10.5127. In case the second key resistance is broken, the pair will probably attempt to advance to 10.5330.

If EUR/HKD manages to breach the first key support at 10.4650, it will probably continue to slide and test 10.4447. With this second key support broken, the movement to the downside will probably continue to 10.4310.