USDZAR on the daily timeframe presents an intriguing technical setup characterized by the formation of an ascending triangle pattern. An ascending triangle typically indicates a bullish bias in the market sentiment. Consequently, there are two potential scenarios to consider.
- Firstly, the price action may encounter support around the lower boundary of the ascending triangle, leading to a rebound. This suggests a favorable opportunity for traders to enter long positions as the price bounces off the support level.
- Alternatively, there exists the possibility of a breakout above the upper boundary of the ascending triangle. Such a move would signify a bullish continuation pattern, likely propelling the price higher.