In this examination I see USD (US Dollar) pulling ZAR (S.A. Rand) up until the 13.6 stamp which is furthermore an indispensable pointy because I am expecting a break after a retracement for a few pips then we'll see whether it breaks or not. I really think it is well while in transit to break since it has been an outrageous get in South Africa to the degree TAX ...
USDZAR is in global uptrend. But no instrument moves in straight lines. What we have witnessed was 50 % retracement and now its forming a clear fry pan bottom (also called Bump and run reversal bottom in Bulkowski's encyclopedia of Chart patterns) reversal pattern, right above 50 % global trend fibonacci level. Pring´s KST confirms the reversal.
USDZAR goes bullish towards the median line between the previous resistance and support (around the 13.00000 region).
Scenario 1: The momentum is enough to carry the US DOLLAR upwards to the next Fibonacci line around the 13.45000 region, 7000+ pips upwards.
Scenario 2: The DOLLAR does not have sufficient strength to break through the median line and instead ...
Interesting setup on USDZAR - Ratings decision on Friday Evening.
For reference on setup - read this article.
Inflection points identified in yellow shades, interesting volume profile on both the 30min and 1D. Thin volume at current price level, could help the velocity of the bounce!
With thanksgiving in the US, we might see a turkey-shoot!!
Anyway Juicy ...
Weekly uptrend still intact (USD long position squaring ahead of big political/credit events). Corrective phase should last until 13.70 area (support trendline). Target ard the year's high - 14.50
ANC prez candidate nomination + nov 24th rating review could provide needed catalyst.
Buy @ 13.72
Take profit @ 14.52
Stop Loss @ 13.58
