(Buy) USDZAR Technical Analysis for April 18, 2018Hello Traders,
Today we shift our focus to USDZAR and from the charts, we can see that the ZAR is generally bullish but it looks like the USD is turning the corner if technical developments is anything to go by. As you can see in the weekly chart, USDZAR prices are generally moving up and with a stochastic buy signal turning from deep the oversold territory, we should be angling for USD buy opportunities in lower time frames.
Word of caution, let’s not rush and commit ourselves without sufficient reasons to. From the chart, USDZAR price action is finding resistance at the 20 period MA or the middle BB in the weekly chart and if indeed there is a break and close above 12.2, then we can as well ramp up bulls.
In the 4HR chart, we have some sort of a USD undervaluation with a whole bull candlestick printing below the lower BB. Because of this-and as historical prices shows-correction to the upside is inevitable. We are already seeing this and with those higher highs, aggressive traders can buy USD with stops below this week’s lows at 11.95. After all, if we buy, we are aligning ourselves with the weekly trend and increasing our odds of a possible break out.
Advised by this, my USDZAR trade plan is as follows:
Buy: 12
Stop Loss: 11.95
Take Profit: 12.60
Have good trading day and let me know what you think!!!
This Post was Originally Posted at Forex.Today by Dalmas Ngetich
