GOING LONG AT BREAKOUT OF FALLING TREND LINE

The USDZAR pair had been trading in a bearish Channel since the start of the year. the pair hits its lowest for the year around 13.1392 from its highest high of around 17.781 last year. The Trump victory had put pressure on some emerging markets currencies such as the Mexican Peso and the South African Rand. The USDZAR rallied from its low of the year yesterday after Trump victory forming a Tweezer bottom on the daily chart and also a Double Bottom. The rally saw the pair testing the falling trendline but later closed below it on the daliy chart. there has been another rally on the pair today which has broken the daily trend line again. This rally coincided with South African president Jacob Zuma facing corruption charges and vote of no confidence by the National Assembly that calls for Zuma exit. We therefore favour long position by the break of the daily falling trendline around 13.89 with target @ 14.5000 as both technical and fundamentals favours the pair. Last year around December a ministerial mayhem led to the rand dropping 5% which soared the USDZAR to 17.81. President Zuma stand of corruption and vote of no confidence should weaken the Rand more.

Trade active:

Yesterday we entered into long position based on the breakout of falling trendline. This trade was supported by Trump Victory that saw the dollar rally and also the corruption and vote of no confidence against Jacob Zuma. The trade went nicely into our direction even though Jacob Zuma survived the vote of no confidence for the third time this year. we therefore set first Target @ 14.500 and second target @ 14.800

Trade closed: target reached:

Trade closed with Target one reached