FX:USDZAR U.S. Dollar/South African Rand
I don't trade these exotic, though might consider small position on major sell signal when it mature. However, in the intermediate term, I am . The current formation looks like a called , which if correct should find prices head back the the upper end of the pattern around 9.20 area. Dollar could make partial retracement to the upside against most pairs as could be seen from Dollar Index chart. So this pair could bounce with it, hence could be quite profitable. However, my real interest would lie in Major short around 9.20. At this level, it would complete this potential and could offer opportunity for sell with target back towards 6.60 or lower in line with my view that longer term Dollar Index will be making new historical low in the next 12 months or so. Check out my Dollar Index Chart for explanation.
UPDATE - Since publishing the chart Price has now approach out shorting zone. I would look for ideally a small fall and then another minor dive up to create a marginal higher high and corresponding RSI divergence for a good sell with limited. risk in clearly defined stop loss. OR expect a drop and then partial retracement with weak price action creating a lower low to enter short position with stop above the current high. If we continue higher then we have to wait for another opportunity. Here is the Updated chart
USDZAR, has reached the upside target and is now ready for potential short. As you will note you have Inside Red Candle, Bearish Harami. Hence on the breakdown of the last Blue Candle could be potential short Entry with stop above the high and longer term target is retest of the low. Dollar Index looks very vulnerable to the downside hence whilst ZAR is not represented in Dollar Index could add to our expectation of Dollar weakness. Use your sensible Money Management Rule as always.