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.
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