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East London - After being range-bound since the end of May, the rand/dollar exchange rate made a decisive break of the R10.20 level last week, with a new recent high of R10.44/$ being posted on Thursday.
Declining slightly on Friday to just below the R10.20/$-level to be bid up again, the rand closed at R10.23/$.
With a pin bar candlestick forming on Friday (as circled), it seems as though there are a quite few buyers at the R10.20 support level.
If we can see this level continuing to hold this week buyers might be looking for further upside, for a more substantial rally back up to R10.40 and then (should bullish momentum continue) up again towards the R10.60 overhead resistance, which we last saw in March of 2009.
On the downside, should we enter back into the range below R10.20/$, then those with a bullish bias might look at the R9.80 level yet again, for a bounce and further upside.
Eur/USD
Following continued euro strength against the dollar, we have seen a steady rally in this pair since the middle of July to date.
After a surge of bullish momentum on Tuesday last week, we saw a break up of the 1.3348 level, with the euro declining against the dollar the subsequent day. We then saw continued retests of the 1.3348 support level for the remainder of the week, which seems to have held.
Having posted a bullish pin-bar Candlesitck on Thursday, buyers might look for continued upside (should 1.3348 continue to hold for this week ahead), looking for a rally back again to 1.3435, possibly followed by further bullishness towards 1.3647.
If 1.3348 does not prove to hold, then buyers might look for a pullback toward the 1.3200 to 1.3260 support zone to bid prices back up toward 1.3348 again.
Although only slightly waning in bullish momentum throughout August, the overall trend remains upward.
Therefore those looking for reversal signals might look for a series of lower highs and lower lows being posted in the next week in order to form a bearish bias, especially if trading can resume below the 1.3200 level.
- Fin24
* Brandon Flynn is a technical analyst, trader and trading coach, who specialises in identifying trends, major support and resistance levels using multiple time-frame analysis and price action trading with candlestick formations. Follow him on Facebook.
Declining slightly on Friday to just below the R10.20/$-level to be bid up again, the rand closed at R10.23/$.
With a pin bar candlestick forming on Friday (as circled), it seems as though there are a quite few buyers at the R10.20 support level.
If we can see this level continuing to hold this week buyers might be looking for further upside, for a more substantial rally back up to R10.40 and then (should bullish momentum continue) up again towards the R10.60 overhead resistance, which we last saw in March of 2009.
On the downside, should we enter back into the range below R10.20/$, then those with a bullish bias might look at the R9.80 level yet again, for a bounce and further upside.
Eur/USD
Following continued euro strength against the dollar, we have seen a steady rally in this pair since the middle of July to date.
After a surge of bullish momentum on Tuesday last week, we saw a break up of the 1.3348 level, with the euro declining against the dollar the subsequent day. We then saw continued retests of the 1.3348 support level for the remainder of the week, which seems to have held.
Having posted a bullish pin-bar Candlesitck on Thursday, buyers might look for continued upside (should 1.3348 continue to hold for this week ahead), looking for a rally back again to 1.3435, possibly followed by further bullishness towards 1.3647.
If 1.3348 does not prove to hold, then buyers might look for a pullback toward the 1.3200 to 1.3260 support zone to bid prices back up toward 1.3348 again.
Although only slightly waning in bullish momentum throughout August, the overall trend remains upward.
Therefore those looking for reversal signals might look for a series of lower highs and lower lows being posted in the next week in order to form a bearish bias, especially if trading can resume below the 1.3200 level.
- Fin24
* Brandon Flynn is a technical analyst, trader and trading coach, who specialises in identifying trends, major support and resistance levels using multiple time-frame analysis and price action trading with candlestick formations. Follow him on Facebook.
