USD/ZAR weekly downtrade but daily created uptrend opp.
Firstly USD/ZAR weekly downfall (yellow lines) started in 03/09/18 is still continuing and it may continue until May 2020. It's also supported by RSI and Parabolic SAR indicators. Support line of this trend is 13,82. You can see the chart attached below;
On the other hand when you zoom in to daily chart; Steep downtrend in green line has been broken both on price and RSI indicator.
You can see the 13,82 support worked very well, it tried to break support 5 times but rejected each time. After that the price broke the green downtrend and started to go up to yellow resistance line.
Geren arrow: Critical point in here is that if it can break the yellow resistance trend (started in 3/9/18) and go up to 15,47 resistance which seems unlikely to me but possible.
Red arrow: Or would it fail to break 14,75 (yellow line) resistance and go back to weekly downtrend channel. This way it may test 13,82 support again.
For both scenarios we have to check if the moving average (orange) will break thorough bollinger and if RSI will break the yellow downtrend and 70 point.
My play would be waiting until it reaches yellow weekly down trend line, than to see the reaction to see break/bounce and go with it.
On the other hand when you zoom in to daily chart; Steep downtrend in green line has been broken both on price and RSI indicator.
You can see the 13,82 support worked very well, it tried to break support 5 times but rejected each time. After that the price broke the green downtrend and started to go up to yellow resistance line.
Geren arrow: Critical point in here is that if it can break the yellow resistance trend (started in 3/9/18) and go up to 15,47 resistance which seems unlikely to me but possible.
Red arrow: Or would it fail to break 14,75 (yellow line) resistance and go back to weekly downtrend channel. This way it may test 13,82 support again.
For both scenarios we have to check if the moving average (orange) will break thorough bollinger and if RSI will break the yellow downtrend and 70 point.
My play would be waiting until it reaches yellow weekly down trend line, than to see the reaction to see break/bounce and go with it.
Trade closed: target reached:
First target has been reached and price directly went up to downtrend’s resistance line. And than bounced back towards the triangle’s support.