Is USDZAR A Little Teacup? Humor Me!This Is An Educational Post
I will keep this post short and sweet or at least I will try. If you kept up with my comments on my last post about this pair (see linked idea below), you were reminded to watch price action to see if a short would come into play as an option. We did this to study zone to zone. The comments also provided updates on why as we went further along I was not inclined to enter a short. I hope as you studied as educational, that you did not execute, but just study.
Now on to this study, which is for educational purposes only. I must remind you to not enter this trade but always do your own analysis and confluences as you trade. This is not a signal but an educational study. If you choose to trade this, you do so at your own risk.
Here is what I'm seeing:
1. This pair is looking awfully bullish as it runs through the key level of resistance, where price action is currently (refer to my last post..linked below)
2. Now we know that this pair always gifts us with sharp pullbacks. I am by no means implying to enter a long and ride it out to Rand$16. Know there will be pullbacks in either direction we go.
3. If we break through the area of current resistance, we are well on our way to the next level of resistance. It is too early to tell but if this happens, I will say that this pair will start to look awful teacup-ish!
4. It's not out of the question that the rand cannot reach this price given the underlying fundamentals.
5. Remember that key level in the market I noted in my last idea (see related idea below). Well that happens to be the 50% fib level from swing high to swing low, which if met is the perfect condition for the completion of a handle.
Again, I'm not calling this trade out but it's definitely something to watch. I'm not labeling this a long or a short on purpose because it could be a long to Rand$16 and then it could turn into a short back to Rand$14.5. This is analysis for study purposes. I will say though that if price hits Rand$16 I would definitely be looking for a short. In the short term I would continue to watch price action for signs of pullbacks/reversals and take short term trades. I will continue to provide updates as we go along. I just wanted to share!
Please offer your likes and comments. Also please follow me on Instagram and Facebook (links are below). I am totally loving sharing education on Forex and also my favorite pairs are exotic!
Very important, to get updates on this idea, click the follow flag in the bottom right corner of this idea and also in your Notifications, click that you want to receive notifications for my ideas (you will have to follow me first). This way you will be sure to get timely updates. You must make this option in your Notifications settings
Happy Trading! Keep it safe and always use proper Risk Management
Now on to this study, which is for educational purposes only. I must remind you to not enter this trade but always do your own analysis and confluences as you trade. This is not a signal but an educational study. If you choose to trade this, you do so at your own risk.
Here is what I'm seeing:
1. This pair is looking awfully bullish as it runs through the key level of resistance, where price action is currently (refer to my last post..linked below)
2. Now we know that this pair always gifts us with sharp pullbacks. I am by no means implying to enter a long and ride it out to Rand$16. Know there will be pullbacks in either direction we go.
3. If we break through the area of current resistance, we are well on our way to the next level of resistance. It is too early to tell but if this happens, I will say that this pair will start to look awful teacup-ish!
4. It's not out of the question that the rand cannot reach this price given the underlying fundamentals.
5. Remember that key level in the market I noted in my last idea (see related idea below). Well that happens to be the 50% fib level from swing high to swing low, which if met is the perfect condition for the completion of a handle.
Again, I'm not calling this trade out but it's definitely something to watch. I'm not labeling this a long or a short on purpose because it could be a long to Rand$16 and then it could turn into a short back to Rand$14.5. This is analysis for study purposes. I will say though that if price hits Rand$16 I would definitely be looking for a short. In the short term I would continue to watch price action for signs of pullbacks/reversals and take short term trades. I will continue to provide updates as we go along. I just wanted to share!
Please offer your likes and comments. Also please follow me on Instagram and Facebook (links are below). I am totally loving sharing education on Forex and also my favorite pairs are exotic!
Very important, to get updates on this idea, click the follow flag in the bottom right corner of this idea and also in your Notifications, click that you want to receive notifications for my ideas (you will have to follow me first). This way you will be sure to get timely updates. You must make this option in your Notifications settings
Happy Trading! Keep it safe and always use proper Risk Management
