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By Admin Category October 19, 2023 Comments (05)

USDZAR SHORT IDEA

Exotic currency pairs do possess a certain allure to experienced traders in terms of returns. The South African Rand (ZAR) has been battered lately due to macroeconomic data and political upheavals experienced lately. These geopolitical and economic risks are correctly priced into the market USD ZAR USDZAR Using the smart money concepts, we are witnessing a return to a previous supply established in 2021 and an elimination of price inefficiency. The risks highlighted above only serve to drive the price back to the identified supply. USDZAR ANALYSIS USDZAR DTF Currently, we do not have a confirmed set up though market data indicates we are likely to witness a breakout in the coming weeks. On the Daily chart, we are waiting for a break of the daily structure at the 18 price handle. Once this is confirmed, we expect a retracement to the confluence of fresh supply and liquidity sitting at 18.5 price handle. At that price, we will place our sell orders targeting the downside 17-16.5 price handle. Should the price fail to break lower after consolidation and instead breaks higher, this setup is declared invalid and we shall adjust accordingly.
NB: Our analysis is strictly based on supply and demand, suitable for swing traders.
Risk Warning: CFDs carry a high level of risk to your capital, and you should only trade with money you can afford to lose. Trading may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer: I am not a financial advisor, and I am not telling you where or when to take a trade. I express my personal opinion only. Trading in financial markets involves risk. I am not responsible for any losses incurred due to your trading. I do not recommend any specific trade or action, and any trades you decide to take are your own.
  • Brianna

    19-May-2025

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