USD/ZAR's Explosive Journey Will You Miss the Next Big Move?Narrative Overview
USD/ZAR is pushing higher into a critical Wave 5 expansion. The pair is now heading toward significant Fibonacci resistance levels with momentum on its side. Traders should focus on opportunities to position for Wave 5 completion, while watching key invalidation points to manage risk.
Key Levels to Trade the Wave 5 Upside
Immediate Targets for Wave 5:
22.25 (1.618 Fibonacci – Diagonal Wave 5):
This is the primary target for Wave 5 completion. Price is expected to approach this level with strong momentum, providing a key area to secure profits or tighten stops.
24.35 (2.0 Fibonacci – Extended Wave 5):
If bullish momentum is sustained, this is the next high-probability target. However, the likelihood of a deeper correction increases beyond this level.
Support Zones for Continuation:
19.34 (Inducement Wave 3 Resistance):
Price may retest this zone as support if there’s a pullback before the final push into Wave 5. Holding above here confirms strength.
14.40 (Wave 4 Support – 0.382 Fibonacci):
This is a major structural support that must not be broken. As long as price stays above this zone, the bullish structure remains valid.
Bullish Invalidation Levels:
11.35 (0.618 Fibonacci):
If price falls below this level, the Wave 5 structure is invalidated, signaling a potential long-term bearish reversal.
Core Outlook: Trading Wave 5 Upside
Primary Scenario – Bullish Expansion:
Price is expected to continue its advance toward 22.25 and potentially extend to 24.35. Momentum will likely remain strong unless a significant correction breaks key support zones.
Pullback Opportunity:
Any retracement to 19.34 or 14.40 could offer an opportunity to enter long positions for the final Wave 5 push.
Action Plan for Traders
Enter Long Positions:
Look for pullbacks into support levels (19.34 or as deep as 14.40) to build positions for the Wave 5 push.
Target 22.25, with an extended target at 24.35 for an overextension scenario.
Manage Risk:
Place stop losses below 14.40, as a break below this level could invalidate the bullish Wave 5 outlook.
Monitor price action closely near 22.25 for signs of exhaustion or reversal.
Key Themes to Highlight
Wave 5 in Play:
USD/ZAR is completing its final bullish impulse, targeting 22.25–24.35 as a significant area of resistance.
Pullback = Opportunity:
Any corrections to support levels are potential buy zones to ride the final leg of this bullish move.
Risk Management:
Protect positions below 14.40, as this marks the structural foundation for the current bullish trend.
