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Writer's picturePeet Serfontein

Analyst Thoughts - USD/ZAR Medium-term

THE VIEW IS RETAINED FOR A TRIANGLE PATTERN WITH PRICE OSCILLATIONS BETWEEN 17.95 AND 19.55.

  • The general bearish stance from P has materialised, as part of a potential PQ triangle pattern.

  • The expected downside off P could have completed a QN correction to the S1/K target support.

  • The pair is currently testing the R1* and Q resistance. A R1*/S0 consolidation phase is the interim preferred alternative.

  • An eventual break above R1* will activate further phase D upside to R2 and P, as illustrated.

  • Feasible alternative: Sharp downside off R1*/Q could result in another NQ-defined bearish leg to K.

Target and Re-assessment Levels:

Important Levels: R1*

Primary Trend: Gains to P, followed by a final bearish leg to K

Monthly Range: R1*/S0

Current Trend and Target Levels: R1*/S0 consolidation

Technical Rating: Medium



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