FxWirePro: USD/ZAR bears sustain 2-1/2 month’s lows, slide below DMAs and EMAs heading for falling wedge base – One touch puts to leverage yields

In this edition of technical analysis of USDZAR, we’ve emphasized more on long-term prospects of USDZAR coupled with short term trend as well.

The pair extends dragging price drops, the current prices have consistently been dropping below 21DMA, price behavior drifting in falling wedge (refer daily chart).

The immediate pivot point is at 13.45 levels.

Both leading indicators are positively converging to the ongoing slumps, RSI trending below 37 levels indicates strength in selling interests, while slow stochastic has also shown a %d crossover even below oversold territory which signals the intensified bearish momentum. Same has been the case on monthly plotting.

Additionally, 2016 hasn’t been favorable for USD against ZAR so far, the major trend of this pair seems weaker ever since it has rejected the resistances of 15.8679 levels.

Since then, the bears kept capitalizing on rallies to evidence slumps more than 16.42%, currently trading at two and a half months lows heading towards falling wedge baseline as shown on the daily charting.

The current prices have also slid below EMAs heading towards next strong support at 13.1907 levels (i.e. again around falling wedge base line on dailies).

Overall, the major, as well as the short-term trend has been bearish bias, thus, at spot ref: 13.2717 we recommend speculating this pair via one touch binary puts for further southward targets for the day.

Use these speculative instruments for adding the magnifying effects to the profitability when the research is so certain.

Having said that we wrap up with a concluding note when traders buy a put with the above-mentioned arrangement and this contract is on winning move, they are given a unit of the asset, instead of a fixed amount of cash. Thus, the price of the asset at expiry determines the trader’s gain.