Hi Guys this is a quick lesson from today's live chart USDZAR. Most people are looking to short the Dollar today so in today's trading Room I looked at this particular chart and advised that you only open a trade once price has pushed lower and given a short trade set up. You'll see from the chart that it was tempting to open a short on a fib retracement and you'll also see the reason why it was a bad idea.
Nice to hear your dulets tones, Steve. It had been a wee while and I missed you. I don't norally trade the likes of anything vs s the rand, but this one will be interesting to watch because you have saqid as much. Thank you G
SteveNixon
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@Glendooie, There's a current discussion which says the Dollar is high yielding in the developed world but not in the Emerging Market. That's why we've seen Dxy (Dollar Index) struggling to move lower, it's comprised of EUR,GBP,JPY,SEK,CHF and CAD. If you have a look at EM such as ZAR,TRY, RUB, BRL, CNH you see the dollar is under pressure. I'm wary of trading the EM as it holds higher risks than Dxy but the charts don't tell lies. South Africa in particular is heavily dependent on Commodity exports such as Gold and Platinum which are doing well at the moment. If I see any trading opportunities on EM I'll post a few charts. Hope this helps.