What a ride!!! If you refer to my trade idea below, you will see updated comments along the way.
From a fundamentals standpoint of this pair, there was big budget news this morning for South Africa. The prediction that government debt to GDP would top 60% by 2024 send the rand toppling. The rescue plan for Eskom Bailout helped to calm traders nerves a bit. Investors are somewhat hopeful about the plans that have been put in place, and the direction of South Africa. The rand is still not out of the woods. The Moody's Credit Rating of the rand at the end of March will play a lot into this currency pair.
Now from the technical standpoint, price grazed the 61.8% fib level on the monthly time frame. As we move to lower time frames, I see the possibility of price traveling down a descending wedge, and hitting the 50% or 61.8% fib level, before making another bull run up at some point (my long term belief). Of course this is all speculative. When trading this pair especially, we must keep fundamentals in mind, but pay attention to price action and the technicals along the way. The market can do what it desires to do, we as traders are only along for the ride. So, this goes on to say, trade at your own risk, watch price action, and protect any profits you have along the way. Price action will tell you a story, which will give you an indication that you should close and re-enter or stay for the long haul. Always use proper risk management.
Please like and offer your comments and stay tuned for updates. I am always a student!
From a fundamentals standpoint of this pair, there was big budget news this morning for South Africa. The prediction that government debt to GDP would top 60% by 2024 send the rand toppling. The rescue plan for Eskom Bailout helped to calm traders nerves a bit. Investors are somewhat hopeful about the plans that have been put in place, and the direction of South Africa. The rand is still not out of the woods. The Moody's Credit Rating of the rand at the end of March will play a lot into this currency pair.
Now from the technical standpoint, price grazed the 61.8% fib level on the monthly time frame. As we move to lower time frames, I see the possibility of price traveling down a descending wedge, and hitting the 50% or 61.8% fib level, before making another bull run up at some point (my long term belief). Of course this is all speculative. When trading this pair especially, we must keep fundamentals in mind, but pay attention to price action and the technicals along the way. The market can do what it desires to do, we as traders are only along for the ride. So, this goes on to say, trade at your own risk, watch price action, and protect any profits you have along the way. Price action will tell you a story, which will give you an indication that you should close and re-enter or stay for the long haul. Always use proper risk management.
Please like and offer your comments and stay tuned for updates. I am always a student!
코멘트:
Traders beware. If your positions are open you may want to consider closing or at least protecting your profits. Currently price does not like the zone it's in, and I could see it very well rejecting and reversing course for the short term as demonstrated below. This is not a signal, but something to watch. Watch price action. Anything could happen over the weekend, which would change this thought.
코멘트:
See most recent trade idea dated 2-28-19
