Unit could test fibonacci level at 12.68 or even lower at 12.31, then I will buy and hold for bullish trend reversal possible up to 13.7 area. High Profit/Risk ratio on this unit once it starts reversal.
Motivation: Despite economic recession, Moody downgrade, political turmoil, ZAR has been strengthening. However, the longer-term effects of the economic downgrades will become evident. The unit is expected to trade at 13.72 at the end of Q2/17. The USDZAR is undervalued at the moment.
Trade active
⋅
Short term traders can close now. Longer term traders can watch to see if USDZAR drops through 12.75. If indeed it break the support, I would close my trade and reenter when the unit hits a low again.
Trade closed: target reached
⋅
Well, the rand didn't break the support, and long-term traders were rewarded handsomely for it! Hope my chart did help!