JT asked about my count for USD/ZAR as I recently said I expect ZAR to weaken.
My preferred count is, that a large triangle is developing and that we currently are in the later part of the D-leg higher towards at least 10.71, but we could easily see it higher towards 11.10 before the D-leg is over and the final E-leg lower takes over.
However, there is a much more bullish possibility. If the bottom at 5.535 in late 2004 where all the correction needed, then the rally from 5.535 to 11.81 in 2008 was a leading diagonal as wave 1 and the decline from 11.81 down to 6.53 in 2011 was wave 2 and we are currently in wave 3 higher and if this is the case, then resistance near 11.10 should be overcome with no problem at all. However, for now I do think, that the triangle scenario fits the picture the best, but we should always stay flexible.
Hi EWS most appreciated have a great day
ReplyDeleteBest Regards jt
You are most welcome JT
ReplyDeleteA great day to you too.
Kind regards
EWS
Hi perhaps it is not the time to bother because this is the time to trade. I want to you to look at the usdcad because it is approaching the right shoulders and i beleive 1.0395 should hold now for a break above 1.0600 and test 1.1040 area. And one more thing aussie test 0.9146 which is 38.2% of the the whole wave from bottom to top . Are u still maintain your weakness on Australian dollar.
ReplyDeleteMy kindest regards for your Hardwork
Hi Aman,
ReplyDeleteI will update USD/CAD later today, but I agree with you, that we should see USD/CAD higher from here towards the 1.08 - 1.0850 area as the first resistance area.
No change in my call for more weakness on the Aussie. If/when we are going to see some strength in the Aussie it should be because of corrections, but the main trend is down.
Kind regards
EWS