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Writer's picturePeet Serfontein

Analyst thoughts: USD/ZAR Medium-term

VIEW RETAINED FOR A MEDIUM-TERM CONSOLIDATION THAT IS PART OF THE BULL TREND TO 20.30

  • The recent price action has established the consolidation parameters as R1* and S1*. The X phase has extended beyond S0 to the R1* tops.

  • The test and reversal off S1* to R1* has completed phase X. The interim view remains for consolidating and downward price towards S1 to complete the final phase Y.

  • If S1* holds during any downside then an eventual bullish outcome would be for impulsive upside (i, ii, iii, iv, v) to at least new highs, as illustrated.

  • Alternative: With the more significant trend bullish, a definite breach of R1* will activate the indicated upside.

  • R1* and S1* are the important levels.

Target and Re-assessment Levels:

Important Levels: R1* and S1*

Primary Trend: R1*/S1* consolidation, followed by a bull trend to T1

Monthly Range: R1*/S1*

Current Trend and Target Levels: Downside off R1* to S1*

Technical Rating: Medium


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