Target - 13.8000 levels. Saw a knee jerk reaction today due to "strong dollar" comments by Trump, amplified by local political news in South Africa. I see a pullback here.
Finally the bounce up I've been waiting for several weeks now. Going long with TP near 15.000 after the S&P downgraded South Africa's debt to junk status.
www.dailyfx.com
D:
W:
Confidence: A (with USD index chart beginning to show signs of recovery and weaker ZAR after the downgrade, technicals aligned with fundamentals and sentiment)
- Trade base off political uncertainty on the South African front.
- The PM fired
- Expecting the USD to keep strengthening against the Rand.
- Possible re-entry the moment it dips.
- Weekly charts will show text book Bollinger setup.
Here, we are looking at the USD/ZAR on the 4h chart.
Price has broken out of the previous down trend. As price makes its way up, it has the potential to complete a bearish bat pattern at the 13.6000 level.
The measurements for a valid bat pattern are detailed below.
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
Final X to D: 0.886
Here, we have the USD/ZAR on the 4H chart.
The bullish 5-0 pattern has completed, and now we are just waiting for reversal to take place.
The breakout of the current trend channel is further confirmation for the price reversal, along with the 5-0 pattern completing right on top of the trend line.
The measurements for a valid 5-0 pattern are detailed below.
B:...
Today, we are looking at the USD/ZAR on the 1h chart.
Price is making its way down to D point quite nicely!
12.95 level is a huge support and resistance zone. We can definitely look for price to reverse at this point.
The measurements for a valid bat pattern are detailed below.
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
Final X to D: 0.886
USDZAR is about to makenews highs this and next week!
You can see perfect bounce from demand zone based on H1 timeframe,
Fibo 50% Price Reverzal Zone (PRZ) and supportive trendline.
If USDZAR will break Structure + Resistance + Trendline, we can see big move up in next weeks.
Keeps eye on that.
For the record: USDZAR and USDMXN are only exotic pairs I trade...
Mid H4 Resistance is 13.21.
Budget speech being tomorrow there is a 85% chance this will go long but I am personally doubtful.
Trailing stops are a must though
The South African Rand seems to gain some traction against the greenback. It's expected that the South African Rand will strengthen to approximately R12/$. There is a possibility of a retracement to the support turned resistance at 13.2000 level which also corresponds with a 50% Fibbonachi retracement level on the 4 hour chart. If it doesn't pull-back, I'll short...
