Potential Short-Term Long/Short for USDZAR Cont.

14. Mai 2020

I have denoted the two movements I believe are probable given the technical analysis I have done with two different coloured sets of arrows. In both scenarios I believe there may be a test of the upper bound of the 4H channel prior to the movement taking place. The purple arrows denote the movement I believe will take place if the 4H channel is re-entered and the bottom bound of the 1H channel is broken, which I believe may lead to a bearish price movement to the lower bound of 4H channel before a bullish price movement takes place. The green arrows denote the movement I believe will take place if the 4H channel remains broken after the test, after which I believe the 1H channel I have drawn in will continue to be respected to the 4H resistance zone before making a bearish price movement. I'm trading the USDZAR strictly on the H1 given the unpredictable nature of its longer term movements. Let me know if you agree/disagree.