Abstract：If you have been watching the charts as of late you may notice that the USD has recently lost its momentum. The USD is the most used traded currency in the world effect of eh dollar itself is bound to have an effect on the rest of the market as it has affected the USDZAR Today we will discuss why the market has taken this new direction and what we can expect for the next few days.
If you have been watching the charts as of late you may notice that the USD has recently lost its momentum. The USD is the most used traded currency in the world effect of eh dollar itself is bound to have an effect on the rest of the market as it has affected the USDZAR Today we will discuss why the market has taken this new direction and what we can expect for the next few days.
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If you want to have an overview of all the directions of the majority of USD Paris it is best to look at the DXY. The DXY is the Dollar index meaning it shows the value of the dollar by itself. Over the last few days, the index has been tanking considerably. As most trading pairs are traded against the USD it makes sense why we are able to see that currency pairs are changing their direction
The USDZAR amongst other pairs just recently had a drastic market shift. We were trading past the 18-rand level now we are well below it at 17.80, quite the change in just three days. We also broke past the swing low level at 17.90.
What does that mean for us traders？
If you were in a long buy for the USDZAR I highly recommend you secure and take profit as the market may continue in that direction. The DXY is at support right now but it is expected to break through. When it does we may have another windfall in pips.
We should start looking for shorting opportunities in the pair. The last swing low was the 17.90 level. That previous support should now turn into resistance. Around that level, we should start looking for confirmation signals such as market momentum, reversal candlesticks, etc.
