HullBuster |USDZAR bouncing off support
Gann Technical Analysis: USDZAR 4 hour chart
Overall, we’re bouncing off the 12 April low with the price action firmly contained above the rising 1:1 line. The recent pullback from the 22 October peak could not penetrate the descending 1:4 line and is now enjoying a powerful rally. According to Gann principles we could see the price continue to climb until the negative 2:1 line. Then look for a bounce off the negative 3:1 line. A break above the 8:1 line would put the USDZAR in blue sky territory while a fall below the rising 1:1 line would indicate major dollar weakness. The Gann Timing Box offers a text book stop level at the 38% line. Happy Trading! And Happy Holidays!
Methodology:
I use external Gann software to calculate the angles. The software uses a fixed grid calibrated per instrument. I use the TradingView Gann Fan to illustrate the analysis. It is not used in the calculation so the angles do not match your viewport orientation. Please see my angle gauge for a 360 degree representation of the calculation result using the current instrument price as of this date. The peak angle is represented using negative coordinates so as to preserve the Gann parlance and event recognition. It is not part of the formal indicator.
William Delbert Gann (1878-1955):
Commodities trader who developed a technical analysis method using geometric angles to forecast price movement. The core of his work relies on pivot points and lines drawn at fixed rates of speed. He is also the author of numerous finance books and trading courses. Although he developed several time and price indicators, this analysis uses only two: the Gann Fan and Gann Square.
USDZAR:
The South African Rand is a commodity currency established in 1961. It has been steadily weakening against the U.S. Dollar since 2012 due to mining industry decline and significant trade deficit. It is prone to lengthy periods of volatility against the major currencies. It’s currently trading at around 17 ZAR’s to the dollar. Looking at the weekly chart it’s easy to see where this currency is headed. Widespread unemployment, crime and political unrest is likely to keep pressure on this currency for the foreseeable future. However, trading this currency will require and iron will and either deep pockets or tight stops. The nominal swing range is around 3000 pips with relatively frequent bursts of 10000 pips or more.
Overall, we’re bouncing off the 12 April low with the price action firmly contained above the rising 1:1 line. The recent pullback from the 22 October peak could not penetrate the descending 1:4 line and is now enjoying a powerful rally. According to Gann principles we could see the price continue to climb until the negative 2:1 line. Then look for a bounce off the negative 3:1 line. A break above the 8:1 line would put the USDZAR in blue sky territory while a fall below the rising 1:1 line would indicate major dollar weakness. The Gann Timing Box offers a text book stop level at the 38% line. Happy Trading! And Happy Holidays!
Methodology:
I use external Gann software to calculate the angles. The software uses a fixed grid calibrated per instrument. I use the TradingView Gann Fan to illustrate the analysis. It is not used in the calculation so the angles do not match your viewport orientation. Please see my angle gauge for a 360 degree representation of the calculation result using the current instrument price as of this date. The peak angle is represented using negative coordinates so as to preserve the Gann parlance and event recognition. It is not part of the formal indicator.
William Delbert Gann (1878-1955):
Commodities trader who developed a technical analysis method using geometric angles to forecast price movement. The core of his work relies on pivot points and lines drawn at fixed rates of speed. He is also the author of numerous finance books and trading courses. Although he developed several time and price indicators, this analysis uses only two: the Gann Fan and Gann Square.
USDZAR:
The South African Rand is a commodity currency established in 1961. It has been steadily weakening against the U.S. Dollar since 2012 due to mining industry decline and significant trade deficit. It is prone to lengthy periods of volatility against the major currencies. It’s currently trading at around 17 ZAR’s to the dollar. Looking at the weekly chart it’s easy to see where this currency is headed. Widespread unemployment, crime and political unrest is likely to keep pressure on this currency for the foreseeable future. However, trading this currency will require and iron will and either deep pockets or tight stops. The nominal swing range is around 3000 pips with relatively frequent bursts of 10000 pips or more.