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Writer's pictureLester Davids

USD/ZAR Strong Price Action ... Becoming Extended vs 75-EMA

Price Action Model with readings for 3x time frames



Price Chart + technical Trend Ratings + Moving Average Slopes + Candle Structure


Here's an AI-assisted summary of the price action model


Overall Trend:

  • Bullish: The overall trend is bullish across all timeframes (7-day, 14-day, and long-term).


Short-Term Price Action (1 to 10 Trading Days):

  • Buyers in Control: The market is currently in the hands of buyers.

  • Potential Pullback: A potential pullback to the 8 or 21 EMA (Exponential Moving Average) is expected before the next move higher.

  • Overbought: The market is approaching overbought territory, suggesting a potential pullback could be imminent.


Medium-Term Price Action (2 to 4 Weeks):

  • Steady Upward Trend: A steady upward trend is likely.

  • Consolidation: Consolidation is expected around certain levels.


Long-Term Price Action (5 to 8 Weeks):

  • Bullish Regime: The market is in a bullish regime.

  • Potential Pullback: A potential pullback to the previous session's close or the 8-week EMA can be used as an accumulation zone.


Key Takeaways:

  • The market is currently in a bullish trend.

  • A short-term pullback is possible due to the market approaching overbought conditions.

  • Traders can use the 8 or 21 EMA as potential entry points for long positions after a pullback.

  • The medium-term outlook is for a continued upward trend with potential consolidation periods.

  • The long-term trend remains bullish, and traders can utilize pullbacks as accumulation zones.


Analysis as of 01 January 2025 at 15h01


Lester Davids

Analyst: Unum Capital

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