USDZAR, Daily
The USD has had a positive start to May appreciating (in some cases significantly) against its major trading partners in Europe and Asia. It is up against all the seven majors EUR, JPY, GBP CHF, CAD, AUD and NZD. Our Traders Board feature shows this very well and allows you to monitor the relative strength of the majors in real time and for the last five trading days. The image below shows the performance of the USD over the last five days. It’s a feature that is well worth making part of your trading day.
The two percent plus move against the Asian currencies is also reflected in the emerging market currencies too. One pair that caught my eye today was the South African Rand (USDZAR).
Trading the exotic pairs brings some additional risks and rewards. The lower liquidity and higher spreads means that trades should be carefully constructed and evaluated before executing. As we always emphasize your trading capital is your most important asset and you should always trade with strict risk management rules. “Trade what you see not what you think”, apply your rules consistently and you can be successful regardless of the asset or time frame you choose to trade.
The USDZAR broke some key levels yesterday and looks to be in a bullish up move:
- Last week it rallied to the 23.6 Fib level and the psychological round number at 15.0000.
- It finally closed above 15.0000 yesterday having reached the level in the three previous trading sessions but was unable to breach the level. So we have had a fairly typical, reach, breach and broken pattern.
- Yesterday’s close (15.1650) was also at a key level, which had previously been support, during February and March, and had turned to resistance for April. A close today over this level indicates strength for this pair.
I will be looking for Target 1 area around 15.3800 – 15.5000 and Target 2 around 16.0000 – 16.3000.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Janne Muta
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
http://www.topforexbrokerscomparison.com
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.