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Technicals Hinting At Further Rand Weakness

By Russell ShorForexSep 11, 2018 16:12
za.investing.com/analysis/technicals-hinting-at-further-rand-weakness-200197571
Technicals Hinting At Further Rand Weakness
By Russell Shor   |  Sep 11, 2018 16:12
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USDZAR
USDZAR

The left chart shows the daily chart for USDZAR. The EMAs are in a bullish formation. I.e. the green 5-day EMA is above the orange 13-day EMA, and the orange 13-day EMA is above the black 34-day EMA.

Moreover, the RSI(9) is above 50 and indicative of bullish momentum (blue rectangle). Today’s candlestick, whilst still to complete, currently looks like a bullish hammer (blue arrow). I.e. sellers sold the USDZAR down to the period low then promptly lost control to the bulls who have taken price back up.

The right chart shows the 4H chart for the pair. Price pulled back 38% of the previous impulse move and found support. This level is also at today’s S2 pivot. The USDZAR may also be charting a bullish wedge (green converging lines). If this pattern completes it may be the beginning of the next impulse move up. It is also worth noting that the stochastic is showing a bullish divergence. I hope that this scenario does not play out – I filled up my car yesterday and definitely have a little less in my wallet. However, the technicals seem to be hinting that there is more pain to come.

Technicals Hinting At Further Rand Weakness
 

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Technicals Hinting At Further Rand Weakness

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Black Emperor Wandile
Black Emperor Wandile Sep 14, 2018 11:59
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A lot of analysts have actually mentioned how they think that the ZAR will go to R16 level pretty soon and I really hope that idea manifests in the market.
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Gosball gosball
Gosball gosball Sep 12, 2018 9:02
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I agree...bearish 1D flag developing as well...TP1 is R 16.10
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