Trade FX: USD/ZAR with Unum Capital.
To get started, e-mail lester@unum.co.za
What is the overall trend for USD/ZAR? The overall trend for USD/ZAR is bullish across all timeframes.
What is the short-term (1 to 10 days) price action reading? The short-term price action is very strong and bullish. Buyers are in control, but it's advised not to chase the price. If the price fails to hold the highs, the 8-EMA could be a short-sell target.
What is the medium-term (2 to 4 weeks) price action reading? The medium-term price action is also very strong and bullish. Buyers are in control, but again, it's advised not to chase the price. If the price fails to hold the highs, the 8-EMA could be a short-sell target.
What is the long-term (5 to 8 weeks) price action reading? The long-term price action is showing aggressive buying underway. However, it's advised not to chase the price. Look for an opportunity to short-sell back to the 8-EMA if the price fails to hold prior session range highs.
In summary, the USD/ZAR is in a strong uptrend across all timeframes. Traders should be cautious and avoid chasing the price. Short-selling opportunities may arise if the price fails to hold key levels or becomes extended vs key moving averages.
Points To Ponder:
The pair is trading at an extended level above it's 75-day exponential moving average. Although extended, it is not extreme compared to historical distance readings.
The pair is above a rising 8-day EMA.
The pair is above a rising 21-day EMA.
The 75-day EMA has turned upward.
The 21-week EMA has turned upward.
The 50-week EMA has started to turn upward.
The 200-day SMA is trading sideways.
Regime for each time frame
Daily time frame = High bullish momentum/Approaching overbought
Weekly time frame = Overbought
Monthly time frame = Strong
Lester Davids
Analyst: Unum Capital
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