- June 5, 2023
- Posted By: capadmin
- Category: Market News
Order block break and retest
The recent break below the order block in USDZAR suggests a potential continuation of the downward trend. This break indicates a shift in market sentiment, as it signifies that sellers have gained control and are pushing the price lower. The order block, which previously provided support, now acts as a resistance level. Traders will likely monitor the price action for a retest of this level before considering further downside moves. A retest of the order block would involve the price moving back up to test the resistance level, providing traders with an opportunity to enter short positions. If the retest holds and the price fails to break back above the order block, it would reinforce the bearish bias and could lead to further selling pressure.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The expected retest of the order block in USDZAR could have several implications for the future direction of the pair. First, it could provide confirmation that the break below the order block was indeed a valid signal and not a false breakout. A successful retest, where the price fails to break back above the order block, would validate the bearish bias and increase the likelihood of continued downward momentum. Secondly, the retest could also attract traders who missed the initial break below the order block. They might view the retest as an opportunity to enter short positions with a favorable risk-reward ratio. This influx of selling pressure during the retest could further drive the price lower. However, it’s important to consider other factors that could influence USDZAR. Fundamental factors such as economic data, central bank decisions, and geopolitical events can have a significant impact on exchange rates. It’s advisable to keep an eye on any news or events that could potentially disrupt or alter the technical setup described in this analysis. Additionally, traders should employ proper risk management strategies and use stop-loss orders to protect their positions in case of unexpected price movements.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.