Trade FX: USD/ZAR with Unum Capital.
As noted on 02 January: "Overbought: The market is approaching overbought territory, suggesting a potential pullback could be imminent." - Scroll Down To View Original Post.
Now, Unwinding From S/T Overbought; 21-Day EMA at R18.32/18.39 In Focus.
Previous Post: 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
Comments