Trading USDZAR

Hi ND,

I noticed very nice movement in USDZAR, need your guidance, how to trade this pair also in which session you suggest?

Please help with your views.

Thanks.

About USDZAR ... I did not find the information so much about how to trade this pair, but I found good correlation indicator just to find the pair to compare with. Indicator is attached.

Some theory:

• positive correlation - relationship between two pairs in which both move in tandem
• negative correlation - relationship between two pairs in which one increases as the other one decreases, and vice versa

So, I found (using this indicator) that USDZAR and NZDUSD is having negative correlation (same as EURUSD and USDCHF) ... not very perfect correlated but it is negative correlation anyway (line in green color is USDZAR, and NZDUSD is in blue color):

And this pair is having negative correlation with USDJPY too

and no one pair is having positive correlation with USDZAR (green color line is USDZAR) - just negative only:

Thanks for help, will check this.

Regards,
Jagadish

and this is negative correlation between this USDZAR and AUDUSD:

So, this USDZAR pair is moved in opposite way with USDJPY, NZDUSD and AUDUSD (in same way as EURUSD/USDCHF for example).

good indicator looks like currency index indicator

D1 price is located above 100 day SMA (100 SMA) and 200 day SMA (200 SMA) for the ranging within the following key reversal support/resistance levels:

• 16.02 resistance level located above 100 SMA/200 SMA in the primary bullish area of the daily chart, and
• 14.00 support psy level located near 100 SMA on the border between the primary bearish and the primary bullish trend.

Ascending/bullish triangle pattern was formed by the price to be crossed for the bullish trend to be continuing, and RSI indicator is estimating the ranging bullish condition by direction.

• If the price will break 16.02 resistance level so the primary bullish trend will be continuing.
• If price will break 14.00 support so the reversal of the price movement from the primary bullish to the primary bearish trend will be started.
• If not so the price will be ranging within the levels.

Resistance	Support
16.02	14.48
N/A	14.00

• Recommendation to go short: watch the price to break 14.00 support level for possible sell trade
• Recommendation to go long: watch the price to break 16.02 resistance level for possible buy trade
• Trading Summary: ranging

SUMMARY : ranging

TREND : bullish