the us dollar pulled back initially during trading on tuesday but turned around of form a nicelooking hammer we have been grinding higher for some time which makes sense considering that the world is a bit concerned about global growth which of course favors the us dollar over emerging market currencies in fact the south african rand has struggled even though gold has taken off to the upside which perhaps has something to do with fear more than gold markets because as most of you will know south africa is a huge exporter of the yellow metal
however the political situation in south africa isnt exactly stable and that has been expressed in this chart you can see that i have a grid laid out in equal distance something that this pair tends to follow quite well we have recently pulled back from the 1450 rand level only to find buyers again i think at this point we are trying to build up the necessary momentum to break out and reach towards 15 rand