Fundamental & Technical analysis on USDZAR shorts Fundamental : Open Interest on the South African Rand is increasing which is a Bearish signal/confluence. Commercial (Hedgers) Short positions are also increasing which for Exotic pairs like USDZAR means they are covering their Longs and add yet another Bearish confluence. Non-Commercial is also increasing its Long positions which is once again Bearish since you have too see it from a 180 degree view point.
COT Report : cot-reports.com
Technical : On the Technical Analysis side of things we have the 5 EMA crossing down the 20 EMA at the same time that Momentum is negative and the Stochastic %K line is underneath the 50% line
Stop Loss & Take Profits : To determine my Stop Loss and Take Profits I use a Fib Retracement drawn from a recent significant Low to a recent High. My strategy uses the 0.236 Fib LVL as the Stop Loss, for this trade that means 18.51172 on the chart is my Stop. Take Profit #1 is at Fib LVL 1.272, Take Profit #2 is at Fib LVL 1.414, Take Profit #3 is at Fib LVL 1.618, Take Profit #4 is at Fib LVL 2, Take Profit #5 is at Fib LVL 2.272, and my final Take Profit which is #6 is at Fib LVL 2.618.
