EURO showing strong downside against ZAR to R17.85M Formation has formed over the last few months with the EUR/ZAR.
The price broke below the support which has become the resistance. ANd the price has been coming down on a trajectory to the psychological level of R19.00.
Now, if it breaks down further, I might be too optimistic but it looks like the next target could hit is R17.85.
What are your thoughts?
Eurzaranalysis
EURZARFor the better part of the year, the South Africa Rand has weakened against major currencies. Q2 we saw a reversal. Presently we have completed a bullish correction that grabbed the trend line liquidity. We have or sell limit orders placed either at the liquidity level of 20.67125 or unmitigated supply at 20.71422. Our projected exit is the liquidity sitting below the equal lows at 19.209.
EURZAR Weekly ShortI drew this pattern a few weeks ago and it's good to see that price has conformed to the pattern. Being a pattern found on the weekly timeframe this level can get tested a couple of time over a number of weeks. The most ideal thing to do is to catch the trade on lower time frames fist analysing the D1. You are basically looking for signs of price divergence over a long period of time. Because this is a very volatile pair, you might see an initial moving away fron the peak and thena violent stop hunt towards the peak just to stop out premature entries and to induce buy entries before the final Downtrend begins. Take care.
EURZAR H1 Bearish Cypher EURZAR is currently in a Weekly order block. We have vector candles showing a decisive three pushes to the current low. RSi and TDI should read lows and Shark Fins in this region. Look for a Head and shoulder pattern to enter long toward the 70.7Fib retracement of the XC leg. Usually pattern failure may occur around the Fib level around the 19.5100 level. If failure occurs then we look to go short at this region until an ABCD pattern is formed as shown. If price manages to breakthrough to complete the cypher pattern then we are looking at minimum two pins to this region before we enter short. M15 may show significant divergence and a close ofprice below EMA 13 would signal a good entry.
EURZAR Bearish CypherA bearish Cypher on the Weekly timeframe is near completion. Price is currently within a Weekly order block and we will most likely see a lot of trapping behavior in this region. This area is arrived at after a very long bullish trend and so as a result we will most likely find a build-up of both institutional volume as well as day-trader volumes. On the daily time frame, the final bearish trend will only be signaled by a noticeable pattern such as a double top, head, and shoulder pattern with significant confirmations around the AoI- Area of Interest. Please note this is a long-term projection and positions for holding long can only be held after the Daily time frame shows the noticeable pattern.
EUR/ZAR Upside to come to R18.23EUR/ZAR is showing classic textbook analysis of a Cup and Handle.
It's broken out of the brim level and is showing strong demand (buying) to come.
The first target is to around R18.23.
CONCERNS: There is a rising channel which the diagonal line is a strong support.
If the price breaks up and out of this channel, we can expect major downside to come for the rand.
BULLISH for the EUR.
EURZAR | Bears Still StrongEURZAR has been trading in a bearish parallel channel and just recently broke the channel. The barometer now is the falling trendline, which will helps to short on strength.
Alternatively, break above the falling trendline will call bulls back in the party and long positions should be open.
Trade your levels accordingly.
EURZAR | Bearish Flag EURZAR after being in a bearish trend (the pole of the flag) moves into the bullish parallel channel. The current price is at the middle of the channel. Two possibilies are here;
The bearish flag pattern will come into play and price will drop sharply if it breaks down the channel.
However the breaking above will result in bullish continuation and one can enter long
Trade your levels accordingly.