According to MarketMilk™, USD/ZAR is in a strong bullish trend.
Check out its Trend Following Rating on the daily(1D) timeframe…
If we look at the daily chart of USD/ZAR, we can see that since the start of the month, price is back ABOVE both the 50 (blue) and 200 (purple) SMA.
Around the same time, USD/ZAR broke out of its descending trendline.
These are all bullish signs.
Let’s see if we can jump on this bullish trend and find an entry to go long by looking at the 1-hour chart.
Price is also above both the 50 (blue) and 200 (purple) SMA here. Again, this is bullish.
But USD/ZAR seems to have hit some near-term resistance (orange dashed line) around the 14.9600 – 14.9630 area.
Looks like a double top has formed. Remember, a double top has an ‘“M” shape and potentially indicates a trend reversal….a bearish trend reversal!
Buuttt…if USD/ZAR can rise and break through its near-term resistance (orange dashed line), then price can rocket back up to its most recent swing high of 15.1000 and beyond.
Here’s my trade idea…
Go long when price closes above near-term resistance.
Place your stop below the low of the breakout candle.
Target 15.1000. But for more aggressive traders, target 15.5000.
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.