Hello Traders,
After the markets opened with a huge gap down on Monday, prices eased up and right now the gap is about to be closed. With the real estate and housing fundamentals expected in the subsequent sessions, it is only safe to safe-from a technical point of view and a bit of fundamental approach-that markets will likely trend higher. Remember last week it was reported that the existing home sales was at its 10 years high. Today, despite the consensus for new home sales being projected lower to an annualized rate of 584K down from 592K recorded in February, a lot of investors think that last week’s existing home sales data will boost the economy and at least lift the anticipated low Preliminary GDP set to be released this Friday. I personally think that the USD will be unaffected by New Home sales data and the drivers of the USD will largely depend on new political developments and policy advancement of President Trump’s administration. Nitty gritties of Tax Reforms and effect of inflation should help push the USD especially now that we expect the CCI-Consumer Confidence Index- later in the NY session. It is expected to tone down by two points to 123.6 but still that figure is near the 17 year’s high recorded in March and any number near this high should definitely be a Green back driver.
Looking at the technicals, it is irresistible to buy the USD right now. First, there is a sweet buy signal which is in sync with the Monthly chart. Both are pointing for a USD buy. Secondly, pasting a Fibonacci tool on March’s Hi-Lo indicate that the gap down and subsequent reversal occurred at the 50% level. It is for this reason that I will simply open a long position now, set my stop loss at the 38.2% Fibonacci level or Yesterday’s low and my TP target will be a 1:3 Risk reward ratio. This should be as follows:
Buy: 13.063
Stop Loss: 12.80
Take Profit: 13.635-14.354-Between 100-161.8 Fibonacci extension levels.
Have a good trading day.

usdzar daily chart-25.04.2017

Source: Dalmas Ngetich

usdzar monthly chart-25.04.2017

Source: Dalmas Ngetich

One thought on “USDZAR DAILY ANALYSIS FOR 25.04.2017”

  1. Dalmas Ngetich - FOREX.TODAY says:

    A better reversal pattern with a nascent leg up forming in the eurzar pair. Look to go long after the close of today’s candle and target this month’s highs of 14.83.

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