EUR/ZAR may rise 1291 - 1891 pips

Our pivot point stands at 19.87.

Our preference

The upside prevails as long as 19.87 is support.

Alternative scenario

The downside breakout of 19.87 would call for 19.77 and 19.71.

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 19.90 and 19.89). Finally, the EUR/ZAR is trading above its upper Bollinger band (standing at 19.98).

Supports and resistances

20.29 **

20.23 *

20.17 **

20.11

19.98 last

19.91

19.87 **

19.77 *

19.71 **

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