USD/ZAR may fall 1205 - 1755 pips

18.1340 is our pivot point.

Our preference

The downside prevails as long as 18.1340 is resistance.

Alternative scenario

The upside breakout of 18.1340, would call for 18.2270 and 18.2820.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 18.1800 and 18.2940). Finally, the USD/ZAR is trading below its lower Bollinger band (standing at 18.0589).

Supports and resistances

18.2820 **

18.2270 *

18.1340 **

18.0980

18.0525 last

17.9320

17.8770 **

17.8220 *

17.7670 **

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