The price line is ready for the next sharp move
USD/ZAR could break out of the long term descending trend line. The price could then grow to level 0.382 of the Fibonacci retracement. A resistance level is formed at 15.402 – 15.498. The price line has reacted to the area a couple of times before and now once more is touching the area.
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is daily.
The green line in the picture indicates the long term trend line that has been broken. The price line then started to formed an uptrend on the pink trend line. The static resistance on 15.402 – 15.498 has stopped the growth several times in the past and therefore is considered as an important resistance. The thin pink line indicates the short term dynamic resistance. In case the price line breaks above the static resistance buyers can expect the price to 16.2345. On the other hand, bears can take the control of the market if the price line breaks below the thin pink trend line; in this case, sellers can target the next trend line (thick pink line of the chart) and in case the price breaks below that line too, 13.555could be the next target for the descending line.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.