USD/ZAR Provides Signs for Reversal
March 16th, 2010 Posted in Technical Analysis
The USD/ZAR has recorded much bearish behavior in the past 3 weeks. However, the technical data indicates that this trend may reverse anytime soon. For example as described below, the daily chart’s signals that a bullish reversal is imminent. This might be a good opportunity for forex traders to enter the trend at a very early stage and at a great entry price.
• Below is the daily chart of the USD/ZAR currency pair.
• The technical indicators that are used are the Relative Strength Index (RSI), MACD and Williams Percent Range.
• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure.
• Point 3: The Williams Percent Range has peaked below the -80 marker, which means that there may actually be a strong level of upward pressure.
• Point 4: The MACD indicates an impending bullish cross, which may signal an upward movement is going to occur in the near future.
USD/ZAR Daily Chart
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Tags: dollar, Forex, forex blog, MACD, RSI, Technical Analysis, USD, USD/ZAR, ZAR
