- April 25, 2023
- Category: Market News
Descending Triangle Breakout with Caution
The USDZAR pair has recently experienced a descending triangle pattern, followed by a break above the triangle. Despite this bullish signal, the strong supply level casts doubt on the sustainability of the upward trend. Traders should await further bullish signals before entering long positions, or alternatively, consider short positions if the price breaks below the triangle again.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The USDZAR currency pair has been showing a notable pattern in its recent price movements. A descending triangle has formed, which typically signals a bearish continuation. However, the price line has managed to break above the triangle, hinting at a potential bullish reversal. Despite this seemingly positive development, traders should remain cautious before entering long positions. The currency pair is facing a strong supply level, which may prevent the bullish wave from continuing. As a result, it is advisable to wait for more bullish signals before committing to a long position.
In case the bullish signals do not materialize and the price line falls back below the triangle, traders should consider the opportunity to enter short positions. A break below the triangle’s lower trend line would serve as a confirmation of the bearish trend resuming.Please note that this analysis is for informational purposes only and should not be construed as investment advice. Trading forex carries a high level of risk, and you should only invest money that you can afford to lose.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.