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Writer's picturePeet Serfontein

Analyst Thoughts - USD/ZAR Medium-term

THE VIEW IS RETAINED FOR AN INCOMPLETE TRIANGLE PATTERN.


  • The medium-term stance of a PQ triangle pattern has been further confirmed by overlapping range trading. The pattern is incomplete but should eventually result in a bear trend to T1 and beyond. 

  • The LM-defined downward correction is potentially phase C of the A,B,C,D,E triangle pattern.

  • A breach of L* will mean that phase C is complete with upside potential to P.

  • Current market action is around the MP midpoint of the triangle, suggesting low directional bias and short-term uncertainty.

  • Medium conviction on the PK triangle pattern.

 


Target and Reassessment Levels:

Important Levels: L* and K*

Primary Trend: P/K ongoing consolidation

Current Trend: Downside off L* to S1

Monthly Range: R1*/K*

Technical Rating: Medium on the PK Triangle



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