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Writer's picturePeet Serfontein

Analyst Thoughts - USD/ZAR Medium-term

THE VIEW HAS BEEN MODIFIED TO ACCOUNT FOR A POTENTIAL AND EXPANDING DECLINE.

  • The general bearish stance from R3 has materialised. The bearish break of the R0 target, suggests further downside potential and the illustrated outlook has been adjusted accordingly.

  • A larger P, K triangle pattern might be developing. The current A, B, C phase could extend to K, followed by W,X,Y gains to R2.

  • the RSI is oversold (see the lower panel) and an interim bounce off S0 to R0/R1* will remain part of the A,B,C downside.

  • R1* is the pivotal mid-point line. A break above this level will indicate that the current downside is complete, activating gains to P.

Target and Re-assessment Levels:

Important Levels: R1*

Primary Trend: Downside to K/S1, followed by gains to P

Monthly Range: R0/S0

Current Trend and Target Levels: Downside to S0

Technical Rating: Medium



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