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Writer's picturePeet Serfontein

Analyst thoughts: USD/ZAR Medium-term

VIEW RETAINED: MEDIUM-TERM CONSOLIDATION

  • The expectation of a 1,2,3,4,5 impulsive bull trend to RA1, followed by a W,X,Y correction to S1*, has materialised.

  • The test and reversal from S1 has completed the initial phase of the bearish correction. The current outlook is for medium-term consolidating price action to occur within the highlighted range.

  • This price action can be contained within the R0/S1 range OR can extend downwards to the now pivotal S2* level. A number of alternative formations could still develop.

  • If S2* holds, a very bullish outcome would be for impulsive upside (i ii iii iv v) to new highs.

Target and Re-assessment Levels:

Important Levels: S2*

Primary Trend: R0/S2* consolidation, followed by a bull trend to R2 and beyond.

Monthly Range: R0/S1

Current Trend and Target Levels: Downside towards S1

Technical Rating: Medium


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