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Exotic Currency Breakout: USD/ZAR (South African rand)
By Sean Hyman | March 19, 2009
If there’s any of you out there that follow “the exotics” like USD/ZAR (South African rand), then you’ll want to note the break of the uptrend line on the daily chart as of yesterday. With the “dollar selling” theme now going on, it was a great time for it to break.
Click on the chart below to enlarge it.
Topics: What To Look At In The Market | 2 Comments »
March 19th, 2009 at 2:04 pm
Hiccups in Forex is a global phenomenon. Even some of the stable Asian markets are sliding down.
March 19th, 2009 at 2:42 pm
Thanks for commenting. Yeah, it’s likely much more than a hiccup. Looks to be a trend change, even though it can have wide swings in this pair.
So it could retrace back up to its uptrend line one more time before falling, but being that it’s got nothing more than a doji so far on today’s daily candle, I’m wondering if it lacks the power to head upward to the uptrend line again. We’ll see. Much of the time, breakouts do retrace back to the point at which they brokeout (or at least the region to which they did). But the ZAR is known for sharp trending moves. So we’ll see.
Keep your eyes on this one. I thought it was intersting that it broke down the very day that the dollar dove upon the Fed comments and gold jumped higher then and today.