USD/ZAR may rise 1635 - 2315 pips

Our pivot point stands at 18.0490.

Our preference

The upside prevails as long as 18.0490 is support.

Alternative scenario

The downside breakout of 18.0490 would call for 17.9350 and 17.8670.

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 above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 18.0320 and 18.0020).

Supports and resistances

18.5300 **

18.4620 *

18.3930 **

18.3250

18.1615 last

18.0940

18.0490 **

17.9350 *

17.8670 **

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