The USDZAR Now in Intermediate Decline
The USDZAR pair fell out of a parallel channel, bounced off the Pitchfork and backtested the channel. On its way down, it broke out of the major Pitchfork and also went below 20 June 2023 price, defining a cycle failure.
Currently we see price recovering the 200 day moving average at a point where a median line intersects a pink support trendline, this is within time window for a half cycle bottom in this pair, we now watch how price reacts with the mid-line while being aware that price action is within a falling wedge whose resistance runs parallel to the resistance of the Pitchfork.
If we overcome the mid-line we next look at the next line especially where it intersects the major Pitchfork. Where we get a strong reaction followed by a swing high will give an indication of a cycle high with expectation for price to go lower.
Currently we see price recovering the 200 day moving average at a point where a median line intersects a pink support trendline, this is within time window for a half cycle bottom in this pair, we now watch how price reacts with the mid-line while being aware that price action is within a falling wedge whose resistance runs parallel to the resistance of the Pitchfork.
If we overcome the mid-line we next look at the next line especially where it intersects the major Pitchfork. Where we get a strong reaction followed by a swing high will give an indication of a cycle high with expectation for price to go lower.
Comment:
USDZAR ended the week with a bearish engulfing candle forcing price back into the bearish Pitchfork. We now expect price to move downwards with a bearish bias.
