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Writer's picturePeet Serfontein

Analyst thoughts: USD/ZAR x-rate

Updated: Jul 25, 2023

VIEW RETAINED: MATURING BEAR TREND

  • The general view of an ABC-type correction to S1 and S2 is in a mature stage of development.

  • The expected downside off R3 has tested the initial S1 target level. The subsequent upward correction is possibly still part of the larger downside to S2*.

  • R0* and S2* are now the important levels. A breach of R0* will suggest to a medium-term trend reversal, while trading below S2* will activate an extended downside.

  • Targets:

  • S1 is the previous consolidation bottom.

  • S2* is important where A= C in length as a common technical extension target.

  • A breach of S2* will extend downside to S3

  • Breaking above R1* will negate the current view.

Target and re-assessment levels

View negated: R0* and S2*

Primary trend and targets: Bear trend off R1* to S1 and S2*.

Current trend and targets: R0*/S1 ranging

Monthly range: R1*/ S0

Technical rating: Medium.


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