USD/ZAR may rise 1076 - 1616 pips

Our pivot point stands at 18.3810.

Our preference

The upside prevails as long as 18.3810 is support.

Alternative scenario

The downside breakout of 18.3810 would call for 18.2920 and 18.2380.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 18.4050 and 18.3890). Finally, the USD/ZAR is trading above its upper Bollinger band (standing at 18.5027).

Supports and resistances

18.7890 **

18.7350 *

18.6820 **

18.6280

18.5204 last

18.4160

18.3810 **

18.2920 *

18.2380 **

Number of asterisks represents the strength of support and resistance levels.