Earlier this week I posted a trade plan for a pullback to the neckline of the head and shoulder pattern on the H1 time frame. Price did not pullback to the resistance level I wanted to sell at though has subsequently made a lower low. If we get the fundamentals needed for a weaker Dollar and Euro remains weak, I favor a short EURZAR position due to the carry. Again, this depends on Trump’s announcement of Fed Chair today and NFP on Friday.

EURZAR Daily

Price opened in the sell zone and bulls did not buy at MPP. Price is currently at support after making a higher high on this time frame. Note the bearish stoch and the 5/8 cross. If we get the fundamentals we need price could be headed down to MM1/ MS2.

EURZAR H4

Bears see that as a lower low while Bulls see that as a higher low. Either way, MPP is going to provide resistance. I don't buy and hold EURZAR due to the negative carry so I will look to sell at MPP if I get the correlation I need on Dollar and Gold.

EURZAR H1

As mentioned on H4, MPP will provide resistance, whether price then breaks support at WM2 will be decided by Dollar strength or weakness. SL placed above WM3 with TP at MM1/ MS2.

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