Channelling ZAR

Hi Dynamic Traders

Hope you're all well and had a fabulous weekend. The autumn weather seems to have arrived here in London.

I wanted to bring your attention to the South African Rand - not everyone's favourite currency due to the big moves it makes, but may be one you want to keep an eye on. Looking at the daily chart, we can see the current trend is down. Back in April we saw price break below the VI suggesting a bearish trend forming. Price has since formed a downward channel and we are currently at a fib breather level coupled with a RN.
















Price has found resistance at this point and Friday gave us a bearish candle. So far today price is also in the sellers favour. Will price continue to go down? The more aggressive traders may already be in this trade, the more conservative will be awaiting a BOB of the low. You may also notice a previous 123786 as well as the false bar on stochastics - both helping to put the odds in your favour. Of course price may bounce up and test the upper TL of the channel - we simply don't know what the market will do. But one to certainly keep an eye on should we see price break the low.

Have a good evening and here's to great trading!

Sonia Molina