USDHKD has been up to test multi-year highs on the back of year-end flows
Not a pair I often look at, it must be said but I’m never one to pass up on a potential trading opportunity. Overnight there was heavy buying in CNHHDK on the back of year-end flows.
That’s helped to send USDHKD up to test a very long-term strong resistance area.
Ordinarily I wouldn’t touch this pair, and I certainly don’t like getting too involved at this time of year but I’m liking the technical picture here, and the reasons behind the move. Even though I don’t like trading around this holiday, I do like to look closely at any moves that come out of the blue and move pairs against the current tech/fundamental picture. I’ve taken a small short up here, which I’ll run over the holidays (if nothing happens sooner). I’ll have a stop above the 7.84 level but I’ve no profit target in mind yet. I’d like to get somewhere sub 7.81/80.
Sometimes you see a level or area that just looks too good to pass up on and maybe this is one of those here. We’re not far off those tops so I’m happy to get in. If we had pulled back much further I would have considered it a missed boat and left it alone.
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