USDZAR breakout or an upside continuation?
USDZAR is testing an uptrend line and possible bearish flag support 16.76. A bounce and a close above 17 is required for the upside continuation and extension higher. For a complete bearish flag downside breakout and higher probability short trade entries, we need to see a confirmed break below 16.70. USDZAR reached 50% Fibonacci retracement of the Feb-Apr swing higher. The overall long-term is an uptrend and a confirmed break above 17.78 will lead to an extended continuation higher.
Note – We are inclined to long trade entries with the stop loss below 16.70 if the stop would be taken reverse to short trades
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