USDHKD trade ideas
USDHKD Trade Idea : Take Profit Is 7.815002022 Dec 22nd 16:00 Trade Idea. Next Take Profit Is 7.81500.
USDHKD | Parallel Channel | Pivot Point | Exit Price 7.81238Target Price 7.81238 Entry Price 7.77847
Are you ready to short USDHKD?Read latest news here
A weakening HKD is good for the Hong Kong economy especially for the exporters. I think there will be some policies coming out from China as HK is now part of China and how HK implement its new policies will much depends on the strategic directions of the central government of China.
So, I will not be rushing to place my bets so soon but await the news first. And if I do, it will be a small % of my total portfolio. Please DYODD
USDHKD Target Price 7.79610USDHKD Market produced a rejection candlestick / pin bar. Enter long position.
Hon Kong Dollar PegThis chart shows the very tight band that the Hong Kong dollar is held in. Today the Hong Kong stock market has spilled significantly and I wonder if this peg can hold. Certainly the price is pushing against the top of the range.
USDHKD Drop imminent on a 5-year RSI signalThe USDHKD pair naturally has a tight trade but at times gets volatility shocks. A signal that since 2017 has triggered such shocks to the downside has been flashing on the 1D RSI.
As you see during that period, every time the 1D RSI formed Lower Highs while the candle action was either rising or flat, a strong drop occured. We have another 5 such occurrences. The price is right now on the multi-year Resistance level, supported by the 1D MA50 (blue trend-line) and the most likely target is the 1D MA200 (orange trend-line), which has been untouched since February 2021.
Notice also the nice flow provided by the Sine Waves that have fairly accurately caught major market lows since 2016. Such a low is next projected by this indicator for the last week of November. The timing seems perfect for a sell on the USDHKD pair.
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THE HONG KONG DOLLAR PEG IS ABOUT TO BREAK.The Hong Kong Dollar is about to be massively devalued against the US dollar.
Set to crumbleThis is the highest USDHKD has ever been every logical trader woukd understand that with the conciding highest levels of inflation and threaths on the US economy due to inflation and skybrocketing gas prices and shortage a probably drop is eminent.
USD/HKD | Price CeilingBased on previous events for whatever reason, USDHKD has never broken above $7.85 and has never broken below $7.75.
This is an exotic pair, therefore the spread would be large depending on your broker. Also their may be a interest fee paid or received just for being in the trade.
Ive been waiting for price to reach this area for quite some time. I was able to buy in at a lower price and ride a long, however the short trade is what I really want.
This could end up being the easiest trade ever, or a wild misunderstanding. I plan to eventually do more due diligence as my confirmations are met.
Previous analysis linked.
$USDHKD selllooks like 7.85 is a very important level.
with the US dollar being so strong I was expecting to break this level
USDHKD 13th MAY 2022As one of the world's leading international financial centers, Hong Kong's service-based services are characterized by low taxes, nearly free ports and good international financial markets.
Hong Kong Monetary Authority (HKMA) has sold US dollar to marking the first intervention of the HKMA in over three years.
It will continue to closely monitor market situations with a view to maintaining monetary and financial stability.
LONG USDHKD: PEG WILL BREAKhkd fx reserves had the biggest plummet of 10% in a few months - biggest on record. at some point peg will break as FX reserves run dry. will be repriced to 8.6 at least.
US Dollar can trigger global crisis, short HKD for 20:1Three years ago the HK protests focused our attention on the US dollar to HK dollar linked exchange rate. Back then, we speculated whether the relationship could hold in the face of Chinese ambitions, extreme levels of leverage and the US-China ‘trade war’. With some of these factors back in play, it’s worth revisiting.
Back in 2019 the band was approaching the lower level of 7.85 HK$ to US$, the floor at which the Hong Kong Monetary Authority (HKMA) keeps holds the level, and many hedge funds were speculating it would not hold (and the HK dollar devalue sharply). And yet, even as COVID-19 looked to be the straw that would break the camels back, it did not. We could make an argument that COVID-19 in fact saved the attack on the ‘peg’. As the virus spread to the US the Fed responded with unprecedented interest rate cuts. In doing so, it made the US dollar less attractive to own relative to HK dollar, and stemmed the outflow of capital that, as everywhere, searches for higher yield. Secondly, HK is a conduit for international capital to flow into Chinese listed equities. When China appeared to be a champion in fighting COVID with its zero-tolerance, while the West was slower and more staggered in its response, capital flowed back East through Hong Kong into equities.
Now, with high bond yields in the US, and the rest of world lagging, capital is looking West once again. Hong Kong is no longer in focus, but regulatory and political risks around Chinese equities, coupled with Xi’s approach to Russia, is bringing western capital back home at an unprecedented rate. To protect the peg the HKMA buys HKD using their reserves, and less HKD pushes local rates higher attractive flows back in. But maybe the speculators will be proved right. Their reasons in 2019, which I won’t go into here but are mainly around HK’s highly leveraged economy and risk of capita flight from an incursive China, may not have been wrong, only the timing.
USDHKDUnder the USD-HKD peg, HKD interest rates will track on higher USD rates amid the Fed’s rate hike cycle. Currently interest rate market is pricing in more than 8 Fed’s rate hikes in the rest of this year and HKD interest rates are set to remain under upward pressure. We expect HKD spot to weaken to 7.85 level in H2-22 and the HKD liquidity drainage via HKMA’s FX intervention will take time to narrow HKD-USD rate spread. The US SEC’s warning on delisting Chinese firms from US exchanges sparked the fire-sale of Chinese investment. Despite equities buying flow from mainland China, Hang Seng Index tumbled to its 10-year low of 18,235 level before settling at 22,000 on Chinese leaders’ strong pledge to stabilize financial markets. The 5th wave of Covid spread in HK appears to peak out but the HK economy is not out of the woods yet. HK Financial Secretary Paul Chan predicted further rise in unemployment rate and a contraction in GDP in Q1.
LOOK FOR SELLS ON USDHKDHello,
I trust you are taking some of this trades & making money. The USDHKD is close to the top and we will be looking for a sell on this pair. The pair has already started forming a reversal pattern signaling to us that we are coming to the end of the bullish trade.
The HongKong dollar is currently trading at 7.83810 per greenback.
Good luck and please follow & comment.
Easy Gains | USDHKDA simple trade setup with low risk and high probable reward. It makes more sense of a higher timeframe, i.e., weekly.
Trade well and take care
USDHKD longSeries of HH/HL seen, while it found resistance but when it came down bounced again before from 0.5 fib. So expecting it to go up again.
How To Trade The Symmetrical Triangle (Long Trade)After price closes above the level, enter a long position. Set take profit at previous horizontal support and resistance levels.
