I am considering taking a long position on this. My strategy involves waiting for a false break of the support level to occur, which may create some liquidity. Then, I want to see the price break above the support level again, after which I will look to go long on the re-test of the support. To limit my potential loss, I will place my stop loss just below the low...
The waves have started overlapping, possibly indicating that the Bulls are running out of steam and anticipating a potential reversal at the previous resistance.
USDZAR looks to have just done a bearish pennant, indicating that the pair might not be done heading south. A conservative target is at the previous low at R18.2/$, but there's a very good chance that support could turn resistant.
I anticipate that this might try to break the 1810-resistant, however, I expect the resistance to hold as what could turn into the neckline for the emerging Head & shoulders pattern. also, the is, what looks like an ending diagonal as our potential reversal pattern.
