Hello Traders,
There is a potential bullish trend developing in this currency pair. To bring things into perspective we will have to approach this using a top down approach. In the monthly chart you can see that EURZAR is completely oversold and what is even interesting is that the support trend line holds. If you zoom out and check this out in the weekly chart, there was a reversal when price action touched the support trend line in the first quarter of 2016 and the bullish trend resumed thereafter. This is what is also happening in this first trading month, price is bouncing up with an oversold stochastics and a series of higher highs at the same support trend line. In the daily chart where our entry will be based on, the resistance trend line was broken today and there is a high probability that price action will close above the resistance trend line. In the past 10-15 trading days a bullish divergence was in developing, look at how price made a series of lower while momentum increased. It is my view that price action will trend higher in the coming day and therefore my plan for this will be as follows:
Buy Stop: 14.66
Stop Loss: today’s lows of 14.36
Take Profit: 15.00
Have a good trading day and let me know what you think.
EURZAR Daily chart-31.01.2017
EURZAR Monthly chart-31.01.2017
EURZAR Weekly chart-31.01.2017
- 0
- 390
- 0
