This article is Part 4 of a series.
The strength in the U.S. dollar against the South African rand looks to be weakening.
USD/ZAR hit an all-time high of 19.34
By Thursday, I saw that buying pressure had finally fizzled out and given that it was a holiday-shortened week (Holy Week), I exited near the end of the day at 18.0050
On MarketMilkUSD/ZARtrend is bullish but weakening
What also concerned me about staying in this trade is the Fed. š
Currently, the Fed is doing all it can to prevent the U.S. dollar from rising
This includes growing its balance sheet by an unprecedented $1.7 TRILLION in just a month and opening swap lines and repo facilities for almost every other central bank out there.
This is dollar bearish. š»
In a nutshell, the Fed is promising the markets that there will be no shortage of U.S. dollars
With the Fed goingā¦buck wild (pun!), the dollar could continue to weaken, especially as fears over the coronavirus pandemic ease.
So if thatās the case, the odds of USD/ZAR reaching 20 now seems low so Iād rather harvest the profits Iāve got before the rand possibly strengthens any further.
My original entry price was at 16.5500018.0050.
The result is a profit of 14,550 pips8.79% gain. š°
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Read more about this trade idea's development over time.
Pippo thinks more traders will favor the U.S. dollar over the South African rand during this time of global crisis. With USD/ZAR in a strong uptrend, heās going to go long.
Pippo went long USD/ZAR two weeks ago and has locked in a profit of 6,000 pips so far. See what he plans to do next.
Pippo went long USD/ZAR three weeks ago and has locked in a profit of 10,6000 pips so far. See what he plans to do next.
Pippo went long USD/ZAR last month and closed his trade with a profit of 14,550 pips.