USD/ZAR: Zooming Out. Have You Considered This Angle?

Trade FX: USD/ZAR with Unum Capital.

To get started, e-mail lester@unum.co.za

Three and a half years ago, during September 2021, we zoomed on the USDZAR exchange rate, asking the question: "will we see a pullback or plain sailing i.e. a weaker ZAR?" Our conclusion, in the same note, was that a weaker Rand was the most likely outcome. At the time, the currency pair printed R14.73 which has since gradually trended higher, reaching R19.92 over the past few sessions. Now at just below all-time highs, the rising trend line which connects the peaks dated December 2001, January 2016 and April 2020 is a potential technical target and resistance range over the long term. This comes in at around R21.15 to R21.70. USD/ZAR Weekly Chart as of Friday 11 April at 13h05.

Ref: USDZAR Monthly Chart on 18 September 2021

Lester Davids

Analyst: Unum Capital