Fx HKD Analysis 28 June 2011
FXFXFX.com 2011-06-28 12:46:39 AM GMT +0800

Fx HKD Analysis 28 June 2011

The bearish USD/HKD Monday came as a surprise to traders. 'We thought the USD should rise to 7.7920-7.7930' given the weak local shares and the spread of euro-zone debt worries to Italy Friday, said a trader at a Singapore bank. That perhaps demonstrates how heavily Europe is influencing the short-term movements in the pair. The turnaround though could continue today given the improved sentiment on Europe. Little else is likely to be on the market''''s radar given the Greek vote in parliament on Wednesday. Traders expect the USD/HKD to trade between 7.7850-7.7920 today. Dow Jones technical analysis shows initial support at 7.7860 (May 26 high), then 7.7820 (100-day moving average). Resistance is at 7.7970 (Feb 24 high), then 7.8000 (psychological).