If you are planning for a holiday to Hong Kong, you are in a treat because Hong Kong Dollar is weakening hence Singaporean tourist can fetch a better foreign exchange rate where you can increase your spending power.
I went to Hong Kong for a holiday in December 2016. foreign exchange then was 5.30 which it gradually reduce my spending power as a tourist. US Dollar was strengthening due to Federal Reserve central bank was embarking on an interest rate hike.
What would be your considerations as an individual/tourist preferring a weakening Hong Kong Dollar or a strengthening Hong Kong Dollar?
Currently, observations on US dollar is weakening on the backdrop of Federal Reserve central bank is expected to raise interest rates 3 X this year in 2017. hence my projections of Hong Kong Dollar is expected to reach SGDHKD is 6 dollars due to Hong Kong Dollar is pegged to US Dollar,
Base on Technical Analysis (TA)
SGDHKD displays double bottom chart pattern in chart 1 on 6 Feb 2017.
Chart 2 it really went to my target classical support neckline black color at 5.7.
Chart 2 you will see a falling wedge chart pattern in blue color trendline resistance and support.
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.