EURZAR long setupEURZAR has printed a long tail (hammer) candlestick at an area of strong support where we have seen the pair rebound in the past. Furthermore the pair broke the support and recovered in a very strong way. The market is also oversold and approaching the descending trendline dating from the beginning of June.
I believe a rebound to the 15.886 area is on the cards. For that we want to see the pair break the trendline and hold above support. We can see it more clearly on the 4H chart
The kind of price action I am expecting is a break of trendline and then a pullback back to support when it encounters resistance from the 50MA to gain strength again.
We also see how the price has been falling but RSI has remained estable. This divergence is also another sign that the pair might recover very soon
Do you have other ideas? Let me know in the comments!!
