EURZAR let's try this LONG again!Another exotic market in my Monday watchlist.
The pair broke the descending trendline a couple sessions back (seen in next chart) but bears took control when the 4H 50MA was touched (seen in next chart) and made me hit my SL :(
Friday was an interesting session. The price printed another hammer candle finishing the session right at the resistance area. That also meant it was a triple bottom, third time it rejected the same price!!
RSI stopped falling as fast as price was falling since 4th of July and in the triple bottom period it gained strength.
This are all bullish signals but lets look at 4H chart :
We have highlighted all the areas we talked about before.
Descending trendline (green) broken and price rejection at 50MA (yellow highlighted area) . Triple bottom ( green circles) and RSI divergence (red arrow) . We can also see how the price was falling in the past but RSI remain stable (blue lines in price chart and RSI chart)
What does that mean? Well it means that the price could potentially rise to the next resistance area at 15.88. In order for this to happen it needs to break the 50MA cleanly. If that does not happen the pair could continue its downtrend and keep falling.
I think buying at the actual price with a SL below the triple bottom could yield very good rewards with little risk.
Let me know your thoughts!
