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Writer's picturePeet Serfontein

Analyst Thoughts - USD/ZAR Medium-term

VIEW RETAINED FOR A GENERAL BULLISH TREND CONTINUATION TO 20.70.

  • The general view of a PQ triangle pattern, followed by a re–emergence of the bull trend to R1 and T1, seems to be materialising. The breach of P/S0* has activated the illustrated gain potential, although a bit earlier than expected.

  • The current R0/S0* consolidation is possibly phase ii of the bull trend to T1.

  • A break of R0 should activate phase iii for upside to at least R1 and towards T1.

  • S0* is now the important negation level and is luckily quite close.

  • A break below this level will suggest further R0/S1 ranging.

  • Expect volatile interim moves!

Target and Re-assessment Levels:

Important Levels: S0*

Primary Trend: Impulsive gains to R1 and T1

Monthly Range: R1/S0*

Current Trend and Target Levels: R0/S0 consolidation

Technical Rating: Medium


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