USDZAR has printed a long tail (hammer) candlestick at an area of strong support where we have seen the pair rebound in the past several times (green cirles). Furthermore the pair broke the support and recovered in a very strong way. The market is also approaching the descending trendline dating from the beginning of June.
RSI is printing a bit of a divergence with the price falling strong but RSI staying neutral.
MACD also confirms the recovery.
I believe a rebound to the 14.6 area is on the cards. For that we want to see the pair break the trendline and hold above support. We can see it more clearly on the 4H chart
The kind of price action I am expecting is an approach to the trendline and then a pullback back to support when it encounters resistance from the 50MA to gain strength again.
We also see how the price has been falling but RSI has been gaining strength. This divergence is a very clear signal for reversal.
Do you have other ideas? Let me know in the comments!!
RSI is printing a bit of a divergence with the price falling strong but RSI staying neutral.
MACD also confirms the recovery.
I believe a rebound to the 14.6 area is on the cards. For that we want to see the pair break the trendline and hold above support. We can see it more clearly on the 4H chart
The kind of price action I am expecting is an approach to the trendline and then a pullback back to support when it encounters resistance from the 50MA to gain strength again.
We also see how the price has been falling but RSI has been gaining strength. This divergence is a very clear signal for reversal.
Do you have other ideas? Let me know in the comments!!
Note
After a promising start the trade hit my SL :(
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.