I'm not really into chart patterns like the head and shoulders, but looking at the USDZAR, its hard to find a bullish case for the Rand. Fact it, it looks weak.
If we break down the inverse head and shoulders structures I've drawn in this chart - we see a small IHS on the daily and a much larger, multi-year pattern that is still to complete.
But what is an IHS except a price butting up against a neckline/horizontal resistance/supply more and more until it looks likely to break out? That's how I see it. A failure of the bears to make any real ground.
A break here opens the way to R16.40
If we break down the inverse head and shoulders structures I've drawn in this chart - we see a small IHS on the daily and a much larger, multi-year pattern that is still to complete.
But what is an IHS except a price butting up against a neckline/horizontal resistance/supply more and more until it looks likely to break out? That's how I see it. A failure of the bears to make any real ground.
A break here opens the way to R16.40