USDZAR | Tough to trade - waiting for R13.70
Choppy, tough market this, especially of late.
MyFXBook shows that retail is positions 79% long. A certain bias, but a tiny data set.
So, a good time to buy USD or might we see a better rate?
The weekly chart I have here shows what I think is an important zone for the pair - 13.70.
We've seen many reversals, pauses and retests of that level - price hardly ever simply disregards it on the way though.
So, if USDZAR tends to look at 13.70 for direction, maybe we should too?
I suspect price will drift down lower to that zone. If we get a big bounce there, we look to long.
A failure at 13.70 seems unlikely, but we trade what we see, not what we think.
Of course, if price starts tracking higher and taking out weekly highs, our bias flips to the long side without a test of 13.70.
But right now, price is in no mans land. Trade with caution.
MyFXBook shows that retail is positions 79% long. A certain bias, but a tiny data set.
So, a good time to buy USD or might we see a better rate?
The weekly chart I have here shows what I think is an important zone for the pair - 13.70.
We've seen many reversals, pauses and retests of that level - price hardly ever simply disregards it on the way though.
So, if USDZAR tends to look at 13.70 for direction, maybe we should too?
I suspect price will drift down lower to that zone. If we get a big bounce there, we look to long.
A failure at 13.70 seems unlikely, but we trade what we see, not what we think.
Of course, if price starts tracking higher and taking out weekly highs, our bias flips to the long side without a test of 13.70.
But right now, price is in no mans land. Trade with caution.
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