USD/ZAR may rise 1382 - 2072 pips

18.2680 is our pivot point.

Our preference

The upside prevails as long as 18.2680 is support.

Alternative scenario

The downside breakout of 18.2680 would call for 18.1530 and 18.0850.

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 18.2790 and 18.2670).

Supports and resistances

18.7210 **

18.6530 *

18.5840 **

18.5150

18.3768 last

18.3140

18.2680 **

18.1530 *

18.0850 **

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