USD/ZAR Signal Today - 25/07: Bullish Trend Near (Chart)
Date
7/25/2024 3:07:28 PM
(MENAFN- Daily Forex) Today's USD/ZAR Signals
Risk 0.50%. Trades must be entered prior to 5pm New York time today.
Short Trade Idea
Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of 18.6617. Put the stop loss 1 pip above the local swing high. Adjust the stop loss to break even once the trade is 20 pips in profit. Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of 18.2690 or 18.0159. Put the stop loss 1 pip below the local swing low. Adjust the stop loss to break even once the trade is 20 pips in profit. Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic“price action reversal” is for an hourly candle to close, such as a
pin bar , a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the
price action
that occurs at the given levels.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money EUR/USD Analysis
In my
dollar to rand prediction
today, I note the following:
The price has been rising within a symmetrical bullish price channel for days, suggesting a reliable if slightly short-term bullish trend which is likely to continue until something significant happens. The price action has been exhibiting a clear sequence of higher lows and higher highs, which is another bullish sign. The price is not far from making a new 3-week high and has room to rise to 18.6617 before it hits a key resistance level, although the upper trend line of the current price channel is lower than that, at 18.5250 right now, which could also provide resistance. The US Dollar has been on a bullish run mirroring the recent price action here, suggesting the current move is dollar and not rand driven. However, the US Dollar Index is currently turning bearish in a key resistance zone, suggesting that we might see a bearish reversal here. Although the US Dollar is showing signs of likely technical bearishness, this may be unreliable as markets are currently gripped by risk-off sentiment which is leading to a major selloff in stocks, and this may have the effect of strengthening the US Dollar anyway.
Taking these factors into consideration, I think there is good scope for a long trade following a bullish bounce at 18.2690 which is a support level, or even at the lower trend line of the price channel. I also see a possibility for a longer-term short trade entry following a bearish reversal at the upper trend line of the price channel, or even better, at the resistance level of 18.6617 – however, this latter level is not likely to be reached today.
Concerning the USD, there will be releases of US Advance GDP and Unemployment Claims data at
1:30pm London time. Regarding the ZAR, there will be a release of South African PPI data at 11:30am.
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