- The Hang Seng 50 has rallied pretty significantly during the trading session on Wednesday as Hong Kong has seen money flowing back into it.
- We are above the HK$18,000 level and the 50-day EMA as well.
- We also had pulled back to the 61.8% Fibonacci retracement level, but it looks like we are in fact going to hang on to that level.
I think given enough time, we are probably going to continue to see the market try to drive towards the 19,000 Hong Kong dollar, possibly even the 19,800 Hong Kong dollars level. In general, this is a market that I think continues to be noisy, but it certainly looks as if we are going to try to continue to drive this market higher. Thursday will be Independence Day in the United States. While that won't directly affect this market, there will be a certain amount of liquidity overnight that will disappear. So, keep that in mind. But I think short-term pullbacks at this point do end up being buying opportunities. This is a market that looks like it's ready to go.
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Hong Kong = United States
Keep in mind that Hong Kong's monetary policy mirrors the United States, and we have recently in the last 24 hours seen people start to speculate again that the U S is cutting rates. So, it does have a knock on effect here.
The 200 day EMA has been held quite nicely as support. I think that's something that you need to keep in the back of your mind. Also, with that being said, it is, um, a situation where expect noisiness, but I do expect the market to go higher. If we were to break down below the $17,400 Hong Kong level, then that changes things. But right now, this looks like a simple pullback and continuation type of a setup.
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