USD/ZAR may rise 1173 - 1743 pips

Our pivot point is at 18.3060.

Our preference

As long as 18.3060 is support look for 18.5670.

Alternative scenario

The downside breakout of 18.3060 would call for 18.2120 and 18.1560.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is below its signal line and positive. The pair could retrace. Moreover, the price is above its 20 and 50 period moving average (respectively at 18.3700 and 18.2200).

Supports and resistances

18.6790 **

18.6230 *

18.5670 **

18.5100

18.3927 last

18.3440

18.3060 **

18.2120 *

18.1560 **

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