TRADE SETUP ALERT 21/10/2020

USDZAR Setup

The ZAR continues to strengthen against the dollar amid increased uncertainty about the upcoming election and market stimulus talks. Multiple levels of diagonal support has now been breached and a move lower towards the Weekly S2 Pivot @ 16.27 and the Monthly S1 Pivot (also acting as the weekly S3 Pivot ) @ 16.10 can be expected. In the scenario of a pullback resistance might be in the area of 16.55 with a close above invalidating the bearish setup and targeting the Monthly Pivot @ 16.68.

GBPUSD Setup

Range Broadening: In light of recent dollar weakness the GBPUSD has broken major horizontal and diagonal resistance and is currently seeing a surge of bullish interest. Targets can be expected at the top of the broadening diagonal channel near the Weekly R2 Pivot @ 1.317. Support can be found around the Monthly Pivot @ 1.300 and should we see a re-test of the breakout this would be a good pullback level, alternatively a pullback to 1.304 can be expected.

GOLD Setup

Possible Gold Breakout: Gold has just managed to pierce the upper diagonal resistance and could be a possible breakout opportunity should we see follow through. In order to realise higher targets of 1955 (Weekly R2 Pivot) price would first need to get above the Weekly R1 Pivot @ 1926. If however we see a pullback or failed breakout the Monthly Pivot @ 1905 could be re-tested with a failed re-test seeing sell-off to the 100 Daily SMA near 1880.