THE DOLLAR WEAKENED SIGNIFICANTLY YESTERDAY AFTER TRUMP’S COMMENTS ABOUT DOLLAR BEING TOO STRONG. HOWEVER I REMAIN A DOLLAR BULL AS LONG AS THERE IS STILL TALK OF FUTURE HIKES. SO ALL THAT COMES TO MIND IS THE AMOUNT OF PIPS TO BE MADE WHEN DOLLAR GETS STRONGER. THE ZAR WAS DOWNGRADED TO JUNK STATUS AFTER PRESIDENT ZUMA’S RESHUFFLE TRIGGERED RATINGS CUTS. I SEE THE ZAR WEAKENING FURTHER OVERTIME AS THE DOWNGRADE TAKES EFFECT GRADUALLY ON THE SOUTH AFRICAN ECONOMY AND THE MAN ON THE STREET. THE RAND MIGHT EVEN FALL TO 14 AGAINST THE DOLLAR, SO IN THE LONG RUN I THINK THE SMART MONEY WILL BE A BULL ON THIS PAIR.

USDZAR DAILY

THE MARKET IS SIDEWAYS. 5 8 CROSS INDICATES BEARISH PRICE ACTION WITH STOCHASTICS POINTING SOUTH. PRICE CURRENTLY HEADING TOWARDS SUPPORT MARKED BY THE GREEN BAR AND FORMING A POSSIBLE HIGHER LOW AT MPP/50% FIB AND PREVIOUS RESISTANCE. I WILL LOOK FOR OPPORTUNITIES TO GO LONG IF PRICE GETS TO MPP & FIB ZONE.

USDZAR H4

PRICE SHOT UP AFTER THE ZAR WAS DOWNGRADED TO JUNK STATUS & THE FORMER FINANCE MINISTER WAS SACKED. PRICE FOUND RESISTANCE AT MR1 CONFLUENCE WHERE BEARS SOLD. THE MARKET IS CURRENTLY SIDEWAYS. STOCHASTICS IS EXTREMELY OVERSOLD AND PRICE IS AT WS1 SUPPORT WITH THE NEXT SUPPORT LEVEL BEING AT WM1 & 200 MOVING AVERAGE. AS A BULL I AM EYEING OUT THESE SUPPORT LEVELS.

USDZAR H1

MARKET IS SIDEWAYS. PRICE IS BEARISH JUST BELOW DM2 WHICH COINCIDES WITH WS1. NEXT SUPPORT LEVEL IS DS1 & DM1. STOCHASTICS ALSO OVERSOLD ON H1. REVERSAL PATTERNS ON LOWER TIMEFRAMES WILL SIGNAL A BUY.

2 thoughts on “USDZAR LONG SETUP, 13 APRIL 2017”

  1. Dalmas Ngetich - FOREX.TODAY says:

    I really think Rating companies are a sham. This is a sovereign state who can at will print money and influence policy to their benefit. Meantime the Zar weakens but once Zuma is out of office, it shall bounce back strongly

    1. Maryna says:

      That will depend on who will take over from him and whether the ANC will still have the majority votes. Interesting times though!

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