The main view of this trade idea is on the 15-Min . The FX Cross USDZAR has been trading in a rectangular pattern between the 14.53145 and 14.9946 range over the last couple of days, providing an opportunity for a breakout in the FX Cross. Expectations are for USDZAR to break below the rectangular chart pattern to head towards 14.21 zone.
Technical Indicators
USDZAR is trading below its short (25-SMA), medium (75-SMA) and fractal moving averages. Also the FX Cross’s KST has had a negative crossover and its RSI is trading below 50. Also, at the time of publishing the technical strategy matrix has an overall sell in the 15-min , 1-hr, 4-hr and daily timeframe . These technical indicators support the view that USDZAR will decline in the short term.
Recommendation
The recommendation will be to go short at market. Stop loss will be set around the 14.45 price level and a target of 15,222. This produces a risk-reward ratio of 1.31.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in USDZAR .