Technical analytics

USDZAR market technical outlook

Daily chart:

Upward wave is fully exhausted. After touch of upper Bollinger band an explicit reversal took place and today the week was opened with downward gap. Thus we can expect further decline in direction of dynamic support 14.4455 (lower Bollinger band).


Optimal area for short-trades is middle Bollinger band (14.9765), market can move there in case the gap is closed. Local target is lower Bollinger band (14.6778).


On hourly chart the pair is also being traded short, but given that trading goes in the middle of lower Bollinger bands range there is a high probability of upward pullback towards middle band (14.9301-14.9765). We can cover shorts at 14.6778-14.7054.


Main scenario: Decline towards 14.6778-14.7054.

Alternative scenario: Pullback towards 14.9301-14.9765 and then start of new downward wave in direction 14.6778-14.7054.

Trading recommendations:

Shorts towards 14.6778-14.7054 (optimal entry point is 14.9301-14.9765).


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