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USDZAR's Topping Pattern Breaks Neckline Support

By Russell ShorForexNov 07, 2018 14:06
za.investing.com/analysis/usdzars-topping-pattern-breaks-neckline-support-200197818
USDZAR's Topping Pattern Breaks Neckline Support
By Russell Shor   |  Nov 07, 2018 14:06
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USDZAR Daily Chart
USDZAR Daily Chart


Since our previous article where we wrote that the USDZAR is charting a potential head and shoulders top, we have been watching the neckline very carefully for a break. The pattern didn’t unfold smoothly and the right shoulder is of the complex variety, with the pattern evolving into a symmetrical triangle. Nevertheless, we note that today the neckline was broken to the downside.

This coincides with a daily downtrend as defined by peak and trough analysis a lower peak followed by a lower trough. The USDZAR’s EMAs are also in a bearish formation. I.e. the green 5-day EMA is below the orange 13-day EMA, and the orange 13-day EMA is below the black 34-day EMA. This is indicative of a mark-down phase (until proven otherwise). Moreover the RSI(9) is below 50 (blue rectangle) and is supportive of an underlying bearish momentum.

If the angle and separation of the EMAs continue it will be on the back of further USDZAR weakness.

USDZAR's Topping Pattern Breaks Neckline Support
 

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USDZAR's Topping Pattern Breaks Neckline Support

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Innocent Ngema
Innocent Ngema Nov 08, 2018 16:49
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It has hit resistance according to my RSI levels, we should experience more bulls in the asset....therefore technically, I'm going long...and I'm seeking to at least gain +60pips
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Innocent Ngema
Innocent Ngema Nov 08, 2018 16:49
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It has hit resistance according to my RSI levels, we should experience more bulls in the asset....therefore technically, I'm going long...and I'm seeking to at least gain +60pips
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Kiân Pamplin
Kiân Pamplin Nov 07, 2018 17:35
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TP AND SL???
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Kiân Pamplin
Kiân Pamplin Nov 07, 2018 17:33
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STOP LOSS???
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Qiniso Que Dlamini
Qiniso Que Dlamini Nov 07, 2018 17:10
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So must we start shorting it
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Black Emperor Wandile
Black Emperor Wandile Nov 07, 2018 15:13
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so I guess now we can bid farewell to the days of the $/R being at the R14 mark.*phew*
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