USD/ZAR is breaking out of a critical channel
USDZAR is breaking out of a critical parallel channelWe have been short the Rand (i.e Long the USD/ZAR pair) since it broke out of the previous parallel channel, however the Rand is gaining strength against the dollar.
We closed the position once the rand hit the 1.618 fib extension target at R18.38/$.
We have switched to a long position on the ZAR due to the following (i.e short position on the USD/ZAR pair):
1) There are multiple bearish divergences that was flashing at the R18.38/$ target
2) We have now closed 5 daily candles below the 50day SMA
3) Rejection at the 1.618 Fib extension target
4) Daily close below the parallel channel that has been in place for a good portion of the 2022
Targets are as follows:
1) R16.8/$ - This is the strongest support and one should close majority of the trade at this target
2) R15.87/$
3) R15.2/$
Good luck
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