I have been watching this pair for a while. Well, I must say, the time is ripe to look for under-valuations in lower time frames and buy. First, like we mentioned in the previous article, the middle BB in the weekly chart was our main liquidation or the resistance line.
However, as it is, prices are now trending above this line and with a whole candlestick likely to close above it, we can as well trade a break out pattern with stops at this week’s lows. Besides, we have this stochastic buy signal turning from deep the oversold territory complete with higher highs relative to the lower BB. Because of this confluence of technical developments, we shall zoom in to the 4HR chart and look for stochastics buy signals before ramping up buys.
In the 4HR chart, sellers are driving prices lower. This is expected because this week was largely bullish and because this is but a minor correction-at least from my point of view, I expect USD bulls to find support anywhere between 12.15 and 12.25. Of course, it will be perfect if we have a stochastic buy signal printing between this support zone since it would cement our bullish projection and help build the much needed momentum.
This is my USDZAR trade plan
Buy Limit: 12.15-12.25
Take Profit: 13-14.50
Let me know what you think. Have a good trading day!!!