~ Week Of May 16th 2016 ~
Have The Buyers Taken Control?
Published by Jay - May 14th 2016
Recently, there has been a struggle between the buyers and the sellers in the market concerning the exotic USDZAR currency pair.
Four days ago this pair printed off a Pinbar on the daily chart, rejecting the key level at around the 15.16500 area. To have sold this pair based upon just the Pinbar itself would of been a mistake.
Notice how price, prior to the Pinbar, bounced off the key level multiple times as shown by the candle wicks and large indecision bar. However, it lacked the strength to move lower. After the Pinbar, price once again failed to move lower, forming another smaller indecision bar which highlighted the ongoing struggle between the bulls and the bears.
The close of the major New York trading session has now seen price smash higher through the key level and close above it, indicating that the buyers may now have control. When the market reopens, it's possible that we will see price rotate lower to the key area, giving us an opportunity to look for a trade entry signal to buy into this pair. Whatever happens, it's important that we wait for confirmation before entering a trade.