I have been watching this pair since last week, price has been up for sometimes and currently at the monthly resistance. Chart above is on TF H4. Awesome Oscillator, Parabolic SAR shows signs of Retracement. I put a sell order with target profit at the middle of Bollinger Bands.
However I make a mistake by entering to early at the Asian market Time, USD/ZAR tends to have bigger spread at Asian Market and therefore it is not recommended to trade this pair at Asian market.
What is a trading Reversal ?
as We know market price move in Trend, and there are two types of trend: a Bullish Trend and a Bearish Trend. A Bullish Trend is when price keep goes up and making a new Higher Low. A Bearish Trend is the opposite of Bullish Trend, it is when Price keeps goes down and making a Lower High.
Reversal is a condition when a Trend either Bull or Bear almost at the end, in other word when price keeps bouncing off a resistance line (Bull Trend) or support line (Bear Trend) it could be that this Trend is almost at the end. There are two possibilities when Trend nearing the end :
Having a bad day today.. USD CNH goes up and break 7
at this time of writing USD CNH is at 7.083
this is what happened when trading not using a stop loss, all hell break loose.
The reason of USD power up against Chinese Yuan is because on Friday, Mr. Trump announced another tax increase as much as 10% on Chinese Imports.
The important lesson is to have a stop loss ! or at least a stop target (I heard rumor that some brokers are stop loss hunter).
Yesterday USD/CNH Climb up and break 7, this morning it even break 7.1
on my graph it was shown short term retracement opportunity on TF H1, So I take it.
After a long waited fed rate cut, as expected The Fed cut interest rate of 25 basis points (bps). Market was already priced in even before The Fed announcement, after announcement of interest rate cut, USD is higher rather than drop.
Today is BOE Rate decision, if Poundsterling get another hit at the news it can hit a new fresh low at 1.19.
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