The USDZAR has been teasing with a head and shoulders for a few weeks now with what appeared to be a break below the right shoulder finally happening yesterday. But now it would seem that the diagonal and 4H 100SMA could offer strong enough support to see us bounce and head back higher. This is coupled with clear bullish divergence on the MFI . The final line in the sand from a support point of view would be 17.18, anything below this and we will first see the HnS target @ 17.05 being met possibly followed by the Monthly pivot around 16.90. If however we see bullish price action and get back above resistance @ 17.40 I believe we will see the rand re-test the weekly pivot @ 17.50 and if we get above that anything from 17.65 (WR1) to 17.95 (WR2 & MR2)
Comment:
Support @ 17.18 is starting to slip with another move lower now starting to look more probable. The 4H 200SMA around 17.00 will be a likely target.
Trade closed: target reached:
The 4H 200SMA has now been tagged and it would be best to take any profit of the table here as a move higher from here is now likely. The MFI bullish divergence is also still present.