HKD Pair Resistance and Near-Term Outlook
Watching the $HKD cross closely after today's push towards the 1.65 area, hitting 1.66 at the high end. It's cleared recent short-term resistance, which is notable. My rough assessment gives it about a 60% probability of holding above 1.64 by month-end, assuming no major macro shifts. The reasoning is that momentum looks decent, and the market seems to be pricing in continued, albeit cautious, risk-on sentiment for the region. However, significant follow-through might be capped around the 1.68–1.70 zone without a fresh catalyst.
Conversely, a retreat below 1.63 would significantly dampen that outlook, suggesting the move was more an exhaustion rally than a sustained breakout. I'd assign that about a 40% chance, particularly if we see any sudden shifts in global liquidity or a renewed strengthening of the dollar index, which could quickly reverse current gains.
I'm seeing similar action with the HKD. The break above 1.65 is indeed a good sign for continued upward momentum, though I'd be watching the volume carefully on any dips. Have you considered how the recent shifts in bond yields might impact that 60% probability?