USD/ZAR may rise 1514 - 2194 pips

Our pivot point stands at 18.0200.

Our preference

The upside prevails as long as 18.0200 is support.

Alternative scenario

Below 18.0200, expect 17.9060 and 17.8370.

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 positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 18.0670 and 18.0800). Finally, the USD/ZAR has crossed above its upper Bollinger band (18.1425).

Supports and resistances

18.5120 **

18.4430 *

18.3750 **

18.3070

18.1556 last

18.0650

18.0200 **

17.9060 *

17.8370 **

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