US Dollar Hong Kong Dollar - Weekly Chart 8th February 2009
The Hong Kong dollar US dollar currency pair is an extremely difficult pair to trade, due to the relative lack of liquidity with this currency pair. As we can see from the weekly chart, in the last two months of 2008, the pair hardly moved from an exchange rate of 7.750, so if you are going to trade this pair in any serious way, you will have to think long term, and forget any intra day trades, as there are simply not enough traders in the market to move the pair in an orderly way, with extreme volatility entering the currencies as we saw in September 2008. Following the long period of sideways movement, prices finally moved in January 2009, and with a bearish engulfing candle following the doji cross of three weeks ago. Whilst this would normally be a good trading signal, in this case we now have strong support at the $7.500 region, and I would therefore suggest that stay out of this pair for the time being – there are many other trading opportunities in other more liquid pairs and this pair is one that is really intended for the professional traders and the money markets, not for retail traders like you and me!
