USDZAR has been in a controlled consolidation since end of December. Now price is retesting support zone. Based on the completion of yesterday's DAY candle, it looked like there was a possibility of moving to the higher portion of in the consolidation area. Instead, today there has been more bearish price action.
Based on price action, I don't see (Long-Term) much supporting evidence of a meaningful correction &/or a reversal. Although it very well could happen, price action is indicating further price pressure. With that being said, I want to see substantially more supporting evidence before entering short at this level confirming support break w/ down trend continuation. Even with the price action today, USDZAR could be building up momentum to at least test the upper level of the consolidation range. I would go short if price moved up close to previous entry point. assuming it was supported by the price action at the time. It may even provide a better entry point.
Charts at the time of this post for reference:
1M:
1W:
1D:
4H:
1H:
Based on price action, I don't see (Long-Term) much supporting evidence of a meaningful correction &/or a reversal. Although it very well could happen, price action is indicating further price pressure. With that being said, I want to see substantially more supporting evidence before entering short at this level confirming support break w/ down trend continuation. Even with the price action today, USDZAR could be building up momentum to at least test the upper level of the consolidation range. I would go short if price moved up close to previous entry point. assuming it was supported by the price action at the time. It may even provide a better entry point.
Charts at the time of this post for reference:
1M:
1W:
1D:
4H:
1H:
