USD/HKD is currently in a bearish trend, failing to sustain its bullish momentum after breaking the 7.79237 resistance level. The price has now pulled back to 7.78626, suggesting a potential continuation of the downtrend.

The pair attempted to break above 7.79237 but faced strong resistance, leading to a reversal. The price is now testing the 61.8% Fibonacci retracement level at 7.78760, which acts as a key pivot area. The 50-week moving average (MA) provides support around 7.77746, while the RSI at 50.33 remains neutral, indicating indecision in the market. If selling pressure continues, a drop towards the 38.2% Fibonacci level (7.77910) is possible.

Market Observation & Strategy Advice:
1. Key resistance: 7.79237 – A failed breakout suggests selling pressure remains strong.
2. Key support: 7.77746 – If this level breaks, a deeper decline could follow.
3. Fibonacci levels: The price is hovering around 61.8% retracement; a sustained move below could signal further downside.
4. RSI Analysis: At 50.33, indicating a neutral stance; a move below 45 would strengthen the bearish case.
5. Trading strategy:

• Bearish case: A sustained move below 7.78626 and a break of 7.77746 would confirm a deeper pullback.
• Bullish case: Only a move back above 7.79237 would negate the bearish outlook and signal renewed buying momentum.

Market Performance:
Forex        Last Price    % Change
EUR/USD    1.0382           +0.04%
GBP/USD    1.2433           -0.01%
JPY/USD     0.0066         -99.00%

Today’s Key Economic Calendar:
DE: Balance of Trade
US: Non Farm Payrolls
CA: Unemployment Rate